FXStreet (Edinburgh) – While the situation in Greece keeps weighing on sentiment, the debt talks with its EU creditors will re-start today in Brussels, remarked analysts at Deutsche Bank.
Key Quotes
“Moving on, talks continued between Greece and its creditors again yesterday but appeared to yield similar results with little suggestion of any material progress or agreement being made”.
“Instead, we heard from Finance Minister Varoufakis who played down fears that the June 5th IMF repayment won’t be made, instead saying that he expects a deal to be made by then which will subsequently release funds for the government to repay its obligations”.
“There were also suggestions, according to the WSJ, that the Greek government has issued a decree ordering the transfer of funds in inactive bank accounts of public sector bodies to be transferred to the Bank of Greece in a bid to raise funds, as well as a proposed tax on undeclared deposits abroad in a sign of how tight the cash position is”.
“In a report put out by the MNI meanwhile, the EC’s Juncker reiterated that June is an ‘obvious deadline’ and that he ‘will do everything to avoid scenarios that include capital controls’.
“Juncker then went on to say that Greek PM Tsipras is ‘becoming increasingly responsible’ before then questioning his party colleague Varoufakis by saying that he is ‘not helping the process’. Greek officials are due to meet today in Brussels while the saga is expected to be a talking point at the 3-day G7 meeting beginning today”.
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