FXStreet (Edinburgh) – Analyst at Deutsche Bank Jim Reid assesses the recent news coming from the Greek front.
Key Quotes
“Moving on, another day passed by in the Greece saga with little material progress”.
“Instead, hopes appear to be fading for any agreement at tomorrow’s Eurogroup meeting after German newspaper Bild reported Greek Finance Minister Varoufakis as saying that Greece will not present a list of new proposals at the meeting”.
“Prime Minister Tsipras was as defiant as ever meanwhile. Speaking in parliament at a meeting of Syriza’s parliamentary group, Tsipras targeted criticism at the level of the IMF, saying that the Fund ‘bears criminal responsibility for the situation in the country’ while also blaming Creditors on the insistence of denying any discussion on debt relief”.
“German Chancellor Merkel extended her conciliatory comments meanwhile, maintaining that she wants to do everything possible to keep Greece in the euro zone and ‘concentrating all my energy on helping the three institutions and Greece find a solution’.
“Later in the day US Treasury Secretary Lew called Tsipras urging him to make a ‘serious move’ to compromise”.
“For now the focus turns to tomorrow’s Eurogroup meeting. In the event of a deadlock, suggestions are that an emergency EU Leaders Summit will be called over the weekend to try and place a formal deadline on Greece. Today’s ELA review will also be important in the context of any potential funding cut off”.
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