12 May 2015
Eurogroup reported progress in bailout negotiations with Greece – TradeTheNews
FXStreet (Barcelona) - The TradeTheNews Team comments on the key developments surrounding the Greece bailout deal and the ELA issue.
Key Quotes
“Greece said to have used funds from IMF account to pay the IMF. Used approx €650M from its SDR IMF account to meet the loan payment of €750M that was due on Tuesday, May 12th (today). Reserves kept in IMF holdings need to be replenished within a month. IMF agreed over the weekend for their use.”
“Report circulated that Greece banks have collateral for added €14B in ELA access. total value of eligible collateral after haircuts last week was about €93B. Last week the ECB raised the ELA by €2B to €78.9B. Suggested if the ECB increases haircuts to the late 2014 levels, such a move could cut €6B off post-haircut collateral and this could reduce the total value of eligible collateral to €87B. This could reduce the remaining amount available under the ELA to €8B.”
“Greece govt said to have raised €600M from its State entities transfer”
“Spain Fin Min de Guindos: Greece reforms needed to be based upon its 2nd bailout program and country needed to provide more substance.”
“Eurogroup Statement: Welcome progress achieved in negotiations with Greece; Feb 20th agreement remains framework for ongoing discussions”
Key Quotes
“Greece said to have used funds from IMF account to pay the IMF. Used approx €650M from its SDR IMF account to meet the loan payment of €750M that was due on Tuesday, May 12th (today). Reserves kept in IMF holdings need to be replenished within a month. IMF agreed over the weekend for their use.”
“Report circulated that Greece banks have collateral for added €14B in ELA access. total value of eligible collateral after haircuts last week was about €93B. Last week the ECB raised the ELA by €2B to €78.9B. Suggested if the ECB increases haircuts to the late 2014 levels, such a move could cut €6B off post-haircut collateral and this could reduce the total value of eligible collateral to €87B. This could reduce the remaining amount available under the ELA to €8B.”
“Greece govt said to have raised €600M from its State entities transfer”
“Spain Fin Min de Guindos: Greece reforms needed to be based upon its 2nd bailout program and country needed to provide more substance.”
“Eurogroup Statement: Welcome progress achieved in negotiations with Greece; Feb 20th agreement remains framework for ongoing discussions”