FXStreet (Edinburgh) – Analyst Jim Reid at Deutsche Bank gives his views on the upcoming scenario in Greece, in light of Sunday’s referendum and beyond.
Key Quotes
“Finance Minister Varoufakis said that he ‘will not’ continue in his post in the event of a yes vote while Tsipras rather vaguely said that in that event he would ‘put in motion procedures foreseen by the Constitution’.
“The IMF also suggested that the cost of a third program for Greece through 2018 would be around €52bn. In a report, the Fund also argued that Greece would need debt sustainability measures including a doubling of maturities on existing loans”.
“A yes vote still carries risks while a no vote opens a wide range of possibilities”.
“Yesterday four coalition government Independent Greek MP’s were said to have voiced their disagreement with the referendum and called for its withdrawal, stating that they would vote yes. This should be seen in the context of a government majority of 11”.
“As we go to print, the results of the latest poll (run by the University of Macedonia) have in fact just hit the wires which show an even split of votes at 43% each for yes and no. The remainder were said to have been undecided or declined to answer”.
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