5 Jul 2015
Greek referendum: 'No' vote means no room for successful bailout talks - Rabobank
FXStreet (Bali) - Maartje Wijffelaars and Allard Bruinshoofd, Economists at Rabobank, expect no room for a successful continuation of bailout negotiations between Greeks and creditors if the 'No' vote wins in the Greek referendum.
Key Quotes
"The non-cooperative scenario: The referendum results in a ‘no-vote’. Tsipras remains in office and feels emboldened towards its creditors by the referendum outcome. There is no room for successful continuation of bailout negotiations, though some brave or maverick attempts may be conducted."
"In the non-cooperative outcome, the ECB is likely to have to withdraw its approval for ELA; there is little hope of a third bailout and barring perhaps the nationalisation of the main part of its banking sector, the Single Supervisory Mechanism cannot but advise the ECB’s Governing Council to consider the Greek banks to be insolvent."
Key Quotes
"The non-cooperative scenario: The referendum results in a ‘no-vote’. Tsipras remains in office and feels emboldened towards its creditors by the referendum outcome. There is no room for successful continuation of bailout negotiations, though some brave or maverick attempts may be conducted."
"In the non-cooperative outcome, the ECB is likely to have to withdraw its approval for ELA; there is little hope of a third bailout and barring perhaps the nationalisation of the main part of its banking sector, the Single Supervisory Mechanism cannot but advise the ECB’s Governing Council to consider the Greek banks to be insolvent."