FXStreet (Edinburgh) – Analyst Jim Reid at Deutsche Bank reviewed the recent developments from Greece.
Key Quotes
“On the back of the parliamentary approval late Wednesday night, at yesterday’s ECB meeting we saw the Governing Council approve a €900m increase to the ELA cap”.
“The small increase largely endorsed the improving but fragile picture with our European colleagues expecting capital controls to remain until Q4 when the bank recapitalization has been completed but with the ECB continuing to review ELA within its rules”.
“For now the bank holiday has been extended through July 19th. Away from the ELA update the other headline yesterday was the news that EU Finance Ministers have agreed in principle on a €7bn bridge loan for Greece from the EFSF which will be needed to help repay €3.5bn of bonds to the ECB on Monday”.
“According to Bloomberg, the deal is expected to be announced formally today after national parliaments have approved the proposals (Bundestag is set to vote today)”.
“Meanwhile, there is yet to be any response from Tsipras with regards to a cabinet reshuffle following Wednesday’s vote although it’s possible that we hear at any moment. For now it certainly feels like headlines are abating and attention is slowly moving to events elsewhere”.
(Market News Provided by FXstreet)