9 Mar 2015
New act in the Greek drama – BBH
FXStreet (Barcelona) - The Brown Brothers Harriman Team, comments that this month will face the ‘Greek’ drama’s new act, involving the ‘creditors’ and the’ adventure’ to find 6.2bln euros for maturing bills and to pay IMF debt.
Key Quotes
“This month is a new act in the Greek drama. The liquidity squeeze is intensifying like the creditors knew it would. It has to find about 6.2 bln euros between maturing T-bills and principle and interest payments to the IMF.”
“New government's T-bill sales could help. It sold 1.14 bln euros of 6-month T-bills last week (2.97% vs. 2.75% at the previous auction). The bid-cover was 1.3. It will auction 3-month bills on March 11 and will likely raise another 1 bln euros.”
“There is another bill auction scheduled for March 18. However, the ECB is keeping firm its cap on T-bills that can be bought by domestic banks.”
“Many officials feign disbelief that the liquidity crisis has pushed Greece into such dire straits. At the same time, others accuse it of already raiding the cash buffers in government programs.”
“Recall that the previous Greek government also struggled to meet the creditors' demands. Aid has been cut off since mid-2014. The clash with official creditors was already happening. The inexperience and style of the new government provides additional color for the confrontational theater.”
“ECB officials opining that Syriza over-promised its voters, as if it would be first politicians do to so, is not particularly helpful either and contributes to the siege mentality of the new Greek government.”
Key Quotes
“This month is a new act in the Greek drama. The liquidity squeeze is intensifying like the creditors knew it would. It has to find about 6.2 bln euros between maturing T-bills and principle and interest payments to the IMF.”
“New government's T-bill sales could help. It sold 1.14 bln euros of 6-month T-bills last week (2.97% vs. 2.75% at the previous auction). The bid-cover was 1.3. It will auction 3-month bills on March 11 and will likely raise another 1 bln euros.”
“There is another bill auction scheduled for March 18. However, the ECB is keeping firm its cap on T-bills that can be bought by domestic banks.”
“Many officials feign disbelief that the liquidity crisis has pushed Greece into such dire straits. At the same time, others accuse it of already raiding the cash buffers in government programs.”
“Recall that the previous Greek government also struggled to meet the creditors' demands. Aid has been cut off since mid-2014. The clash with official creditors was already happening. The inexperience and style of the new government provides additional color for the confrontational theater.”
“ECB officials opining that Syriza over-promised its voters, as if it would be first politicians do to so, is not particularly helpful either and contributes to the siege mentality of the new Greek government.”