30 Mar 2015
Greece funding negotiations will continue to be messy – TDS
FXStreet (Barcelona) - According to Jacqui Douglas, Chief European Macro Strategist at TD Securities, with Greece set to run out of cash soon, a €450mn payment to IMF due next week, and risks of further internal divisions in the Government looming, the Greek funding talks will continue to be messy.
Key Quotes
“Markets are largely ignoring the news from Greece over the weekend, where the Greek government delivered its latest list of reforms to what’s apparently now known as the “Brussels Group.”
"Despite some long negotiations including 10hrs of meetings on Saturday, the reforms were still not considered to be detailed enough, and Greece was sent back to the drawing board yet again.”
“However, it does look like the two groups are coming closer together now, and that Syriza is continuing to back away from its grand election pledges, as it has now reportedly gone back on its pledge to abolish an unpopular property tax, expected to raise around €2.5bn.”
“But it’s going to continue to be a tense situation, as it’s uncertain whether or not Greece has the cash in hand to make the €450mn payment that’s due to the IMF next Thursday, and the Easter holiday this weekend is going to slow down the process of releasing any additional funding for Greece, even if it does come up with a list of reforms that the Brussels Group approves.”
“There’s also the risk of further internal divisions, as some in Syriza are sounding more combative as they’re forced to give in more and more. So negotiations around releasing the last batch of Greek funding will continue to be messy, and will likely come down to the wire again.”
Key Quotes
“Markets are largely ignoring the news from Greece over the weekend, where the Greek government delivered its latest list of reforms to what’s apparently now known as the “Brussels Group.”
"Despite some long negotiations including 10hrs of meetings on Saturday, the reforms were still not considered to be detailed enough, and Greece was sent back to the drawing board yet again.”
“However, it does look like the two groups are coming closer together now, and that Syriza is continuing to back away from its grand election pledges, as it has now reportedly gone back on its pledge to abolish an unpopular property tax, expected to raise around €2.5bn.”
“But it’s going to continue to be a tense situation, as it’s uncertain whether or not Greece has the cash in hand to make the €450mn payment that’s due to the IMF next Thursday, and the Easter holiday this weekend is going to slow down the process of releasing any additional funding for Greece, even if it does come up with a list of reforms that the Brussels Group approves.”
“There’s also the risk of further internal divisions, as some in Syriza are sounding more combative as they’re forced to give in more and more. So negotiations around releasing the last batch of Greek funding will continue to be messy, and will likely come down to the wire again.”