Greece ready to accept more austerity? – Deutsche Bank

FXStreet (Barcelona) - Strategists at Deutsche Bank, offer their observations on the key developments surrounding the Greek crisis – Greece ESM letter, Reform proposal, ECB’s action on ELA.

Key Quotes

“Overnight Greece has submitted a request to the ESM for a new three-year loan. An accompanied statement said ‘Greece is committed to honor its financial obligations to all its creditors in a full and timely manner’. The letter also includes a commitment to pursue ‘a comprehensive set of reforms’. According to Bloomberg, the government has also softened its demand for debt restructuring. The letter states ‘Greece welcomes an opportunity to explore potential measures to be taken so that its official sector related debt becomes both sustainable and viable over the long term’.”

“A more comprehensive and detailed list of proposals is due to be laid out by the end of Thursday. The initial request is due to be reviewed by the Euro Working Group of finance officials.”

“Elsewhere, the ECB left its cap on the ELA facility unchanged. Greek banks are due to stay closed through Monday.”