FXStreet (Edinburgh) – Analysts Jim Reid at Deutsche Bank reviewed the recent developments in the Greek front.
Key Quotes
“The Greek saga took another important twist yesterday when the IMF decided to withdraw its team from negotiations in Brussels, with a spokesman for the Fund saying that ‘there are major differences between us in more key areas’ and that ‘there has been no progress in narrowing these differences recently’.
“The news has put a clear dent in what was the now false optimism that appeared to be building in the previous few days. Instead, the move highlights that 1) both Greece and its Creditors still appear to be no closer to aligning views and 2) that the relationship between both is seemingly on a knife edge”.
“On top of this, tensions in Athens and specifically in Greek parliament continue to add to melting pot of issues, with PM Tsipras regularly coming under fire for more and more criticism”.
“The time pressure has been well documented with the bundling of IMF payments due at the end of the month as well as the need for a Staff Level Agreement to be agreed and passed through Greek parliament before any funds can be released”.
“For now, with talks more or less halted the ball appears to be firmly in Greece’s court and it seems that we are more or less at the stage where it is now time for Government to decide one way or another”.
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