Eurozone: Positive developments in Greece – Deutsche Bank

Research Team at Deutsche Bank, notes that there were some positive developments in Greece to highlight.

Key Quotes

“After talks had effectively been in a standstill over the last few months, yesterday the IMF, European finance ministers and the Greek government came to an agreement on a path forward which should be workable and so as a result allow Greece to receive the funding its needs for bond payments due in July.

DB's resident expert George Saravelos noted that it was a substantial back down from the IMF which allowed for the important step forward. The fund has accepted a softer version of the initial contingency package of fiscal measures, with the Greek side now agreeing to vote on a vague 'spending break' that only imposes temporary across the board spending cuts the year a fiscal target is missed.

A similar softer package on debt measures has also been agreed upon including short, medium and long term debt measures. A number of underlying issues still remain unresolved but it's a positive step forward nonetheless in resolving near term risks of another Greek crisis.”