25 Feb 2015
Euro zone approves Greek aid extensions but obstacles remain – Danske
FXStreet (Barcelona) - Sverre Holbe, Senior Analyst at Danske Bank, explains with the Eurogroup approving the Greek extension, the implementation risks remain high.
Key Quotes
“After approving a list of reform ideas from Athens, the Eurogroup yesterday ratified the tentative agreement reached last Friday, which grants Greece an extension of its financial rescue programme by four months.”
“However, several obstacles remain, including the need for several national parliaments to approve the extension before the bailout expires on Saturday.”
“Furthermore, the remaining EUR7.2bn of bailout funds under the current programme will not be disbursed until the list of reform measures is finally reviewed by the Troika and the Eurogroup by end-April.”
“Of the remaining money, EUR3.6bn is coming from the IMF, which released a statement yesterday voicing concerns, just as the ECB did. Hence, implementation risks remain high.”
“Moreover, Greek finances will remain under pressure in the short term, e.g. in March when large IMF repayments fall due.”
Key Quotes
“After approving a list of reform ideas from Athens, the Eurogroup yesterday ratified the tentative agreement reached last Friday, which grants Greece an extension of its financial rescue programme by four months.”
“However, several obstacles remain, including the need for several national parliaments to approve the extension before the bailout expires on Saturday.”
“Furthermore, the remaining EUR7.2bn of bailout funds under the current programme will not be disbursed until the list of reform measures is finally reviewed by the Troika and the Eurogroup by end-April.”
“Of the remaining money, EUR3.6bn is coming from the IMF, which released a statement yesterday voicing concerns, just as the ECB did. Hence, implementation risks remain high.”
“Moreover, Greek finances will remain under pressure in the short term, e.g. in March when large IMF repayments fall due.”