8 Apr 2015
News articles reporting Greek reparation claims to Germany highlight bad blood in the Zone – Investec
FXStreet (Barcelona) - Jonathan Pryor, Head of FX dealing at Investec, comments that a new twist has been added to the Greece-Germany reparations issue, and that the new calculation and demand from Greek Finance Ministry only heightens the risk of a Grexit and euro weakness.
Key Quotes
“In the Eurozone, the ECB's QE program and Greek default risk continue to see the single currency sold on any rally it can muster.”
“News articles yesterday reported the Greek government are continuing with their war reparations claims, for the Nazi occupation during World War Two. New calculations from the Greek Finance Ministry state Germany owes Greece nearly EUR 279 billion, more than all the Greek bailouts combined.”
“The new figure includes EUR 10.3 billion for an occupation loan that the Nazis forced the Bank of Greece to pay. Berlin paid 115m Deutschmarks to Athens in 1960 in compensation - a fraction of the Greek demand.”
“Germany insists the reparations issue was settled in 1990 before Germany reunified, and is now legally resolved. Whichever way this is settled one thing is for certain, bad blood continues to heighten the risk of a Greek exit and further Euro weakness.”
Key Quotes
“In the Eurozone, the ECB's QE program and Greek default risk continue to see the single currency sold on any rally it can muster.”
“News articles yesterday reported the Greek government are continuing with their war reparations claims, for the Nazi occupation during World War Two. New calculations from the Greek Finance Ministry state Germany owes Greece nearly EUR 279 billion, more than all the Greek bailouts combined.”
“The new figure includes EUR 10.3 billion for an occupation loan that the Nazis forced the Bank of Greece to pay. Berlin paid 115m Deutschmarks to Athens in 1960 in compensation - a fraction of the Greek demand.”
“Germany insists the reparations issue was settled in 1990 before Germany reunified, and is now legally resolved. Whichever way this is settled one thing is for certain, bad blood continues to heighten the risk of a Greek exit and further Euro weakness.”