7 Apr 2015
Greece remains in the limelight – DB
FXStreet (Edinburgh) - Analysts at Deutsche Bank reviewed the Greek scenario ahead of the key repayment to the IMF on Thursday.
Key Quotes
“Over the weekend, Greek finance minister Varoufakis and the IMF’s Lagarde met for informal talks. As well as the (generally unsurprising) conciliatory headlines in the joint statement following the meeting, Varoufakis pledged to meet this week’s upcoming €440m IMF payment on Thursday, easing earlier concerns that the government was to prioritize wages and pension payments over the repayment”.
“Lagarde also confirmed that talks are due to restart with Greece and the Brussels Group this week. The issue around the content of the staff level agreement, with the agreement on fiscal targets and the budget gap in particular, is proving to be a sticking point”.
“As well as the IMF payment on Thursday, Greece is due to auction €1.4bn of T-Bills on Wednesday to pay off a maturity next week. With over half of the T-Bill owned by foreign investors, who may be unwilling to roll, pressure will be on domestic funding to ensure the maturity is fully repaid”.
“For now, all eyes on Wednesday’s T-Bill auction and Eurogroup Working Group meeting”.
Key Quotes
“Over the weekend, Greek finance minister Varoufakis and the IMF’s Lagarde met for informal talks. As well as the (generally unsurprising) conciliatory headlines in the joint statement following the meeting, Varoufakis pledged to meet this week’s upcoming €440m IMF payment on Thursday, easing earlier concerns that the government was to prioritize wages and pension payments over the repayment”.
“Lagarde also confirmed that talks are due to restart with Greece and the Brussels Group this week. The issue around the content of the staff level agreement, with the agreement on fiscal targets and the budget gap in particular, is proving to be a sticking point”.
“As well as the IMF payment on Thursday, Greece is due to auction €1.4bn of T-Bills on Wednesday to pay off a maturity next week. With over half of the T-Bill owned by foreign investors, who may be unwilling to roll, pressure will be on domestic funding to ensure the maturity is fully repaid”.
“For now, all eyes on Wednesday’s T-Bill auction and Eurogroup Working Group meeting”.