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2 Jun 2015
Greek pressure tightens – Investec
FXStreet (Barcelona) - The Team at Investec summarizes the key developments involving the ongoing talks between Greece and its creditors.
Key Quotes
“German Chancellor Merkel hosted an emergency summit on the Greek crisis last night, with Christine Lagarde - IMF MD, the ECB’s Draghi, France’s Hollande and Commission president Jean-Claude Juncker all present. Greek ministers/officials were absent, presumably by lack of invite. It looks as if the Summit was aimed at closing differences in opinions between the different creditor groups and working on an agreement to put to Greece, which looks to have been based on a Commission proposal.”
“Officials are saying that the agreement would not be used as a ‘take it or leave it’ ultimatum for Athens, but be presented to Tsipras for a ‘quick reaction’, although it does have the hallmarks of closing down the options and upping the pressure on Greece, to sign on the dotted line to the creditors demands.”
“Greece has the first of several repayments to make to the IMF this Friday, whilst only until the end of June to reach a full agreement before its access to any of the €7bn bailout cash expires.”
“At the moment it is unclear on the details of the proposal and therefore what Greece’s reaction will be. However, the greater coordination amongst the Troika arms should help in moving towards a solution more quickly which will be good news for the markets.”
Key Quotes
“German Chancellor Merkel hosted an emergency summit on the Greek crisis last night, with Christine Lagarde - IMF MD, the ECB’s Draghi, France’s Hollande and Commission president Jean-Claude Juncker all present. Greek ministers/officials were absent, presumably by lack of invite. It looks as if the Summit was aimed at closing differences in opinions between the different creditor groups and working on an agreement to put to Greece, which looks to have been based on a Commission proposal.”
“Officials are saying that the agreement would not be used as a ‘take it or leave it’ ultimatum for Athens, but be presented to Tsipras for a ‘quick reaction’, although it does have the hallmarks of closing down the options and upping the pressure on Greece, to sign on the dotted line to the creditors demands.”
“Greece has the first of several repayments to make to the IMF this Friday, whilst only until the end of June to reach a full agreement before its access to any of the €7bn bailout cash expires.”
“At the moment it is unclear on the details of the proposal and therefore what Greece’s reaction will be. However, the greater coordination amongst the Troika arms should help in moving towards a solution more quickly which will be good news for the markets.”