18 Jun 2015
The Greek saga to continue today at Eurogroup – DB
FXStreet (Edinburgh) - Analyst at Deutsche Bank Jim Reid summarized the last developments from the Greek front.
Key Quotes
“It was another day of largely negative headlines out of Greece leading into today’s Eurogroup where expectations appear to be pretty low for any hope of a breakthrough”.
“Yesterday we heard Greece PM Tsipras again heighten tensions after saying that ‘if we don’t have an honorable compromise and an economically viable solution, we will take the responsibility to say a big no to the continuation of a catastrophic policy’.
“Meanwhile, Bank of Greece Governor Stounaras fired a stern warning after saying that ‘failure to reach an agreement would mark the beginning of a painful course that would lead initially to a Greek default and ultimately to the country’s exit from the Euro area’.
“This came as the ECB yesterday raised the ceiling on the ELA facility, while there were no announced changes to the discounts on collateral pledged”.
“Over on the European side, German Finance Minister Schaeuble told parliament that the German government is preparing for the worst. In expectation of no breakthrough tomorrow, attention will turn to a likely EU Leaders Emergency Summit meeting this weekend”.
“Given Tsipras’s repeated rhetoric that any agreement must be struck at the highest possible political level, the meeting could be seen as the best possible chance”.
Key Quotes
“It was another day of largely negative headlines out of Greece leading into today’s Eurogroup where expectations appear to be pretty low for any hope of a breakthrough”.
“Yesterday we heard Greece PM Tsipras again heighten tensions after saying that ‘if we don’t have an honorable compromise and an economically viable solution, we will take the responsibility to say a big no to the continuation of a catastrophic policy’.
“Meanwhile, Bank of Greece Governor Stounaras fired a stern warning after saying that ‘failure to reach an agreement would mark the beginning of a painful course that would lead initially to a Greek default and ultimately to the country’s exit from the Euro area’.
“This came as the ECB yesterday raised the ceiling on the ELA facility, while there were no announced changes to the discounts on collateral pledged”.
“Over on the European side, German Finance Minister Schaeuble told parliament that the German government is preparing for the worst. In expectation of no breakthrough tomorrow, attention will turn to a likely EU Leaders Emergency Summit meeting this weekend”.
“Given Tsipras’s repeated rhetoric that any agreement must be struck at the highest possible political level, the meeting could be seen as the best possible chance”.