FXStreet (Barcelona) – The Brown Brothers Harriman Team shares that Greece financial markets have rallied to the upside after ECB increased the ELA for Greek banks yesterday, and further add that the ECB repayment ahead in July might be the “real” deadline.
Key Quotes
“Although there seems to be little concrete out of the negotiations, the noises coming from Europe about Greece is more promising. Greek bonds have rallied, and the local stock market is up 7%, led by a 13% rally of the financial sector. This is despite S&P’s decision to cut its sovereign rating to CCC from CCC+, ostensibly in response to the decision to bundle its payments to the IMF this month.”
“The ECB’s increase in the ELA yesterday was the largest in several months. As the ECB only gives what it assesses Greek banks need, this must be understood as a sign of greater stress on Greek banks.”
“While many observers are looking at the large ECB repayments due next month (and August) that suggest July is the “real” deadline, Greek banks appear to be running out of collateral quicker. That potentially is the “real” deadline.”
(Market News Provided by FXstreet)