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22 Apr 2015
http://www.fxstreet.com/news/forex-news/article.aspx?storyid=a5699735-85cc-47a6-835e-0170414dc129
FXStreet (Edinburgh) - According to analyst Jim Reid at Deutsche Bank, pressure is growing bigger around Greece to come up with a list of reforms to be assessed by the EU officials in light of the Eurogroup meeting on Friday.
Key Quotes
“Greece continues to be the other headline generator at the moment and yesterday we heard that the ECB is looking at proposing an increase to haircuts banks take on the collateral that they post when borrowing from the Bank of Greece in a bid to tighten pressure on ELA funding”.
“Greek press Ekathimerini reported that while the measure has not been formally discussed by the Governing Council, it may be considered should Greece’s leaders fail to convince Euro-area leaders on reforms”.
“Meanwhile, there are various headlines suggesting that the proposed decree forcing local governments to transfer reserves to the Bank of Greece could keep the country afloat until the end of May, although pressure appears to be mounting politically with opposition from various local government officials”.
“With Tsipras due to meet Merkel tomorrow and the Eurogroup meeting scheduled for Friday, a senior euro zone official was quoted on Reuters saying that no deadline will be set for Greece to come up with reforms as doing so leads to brinkmanship in negotiations, suggesting that the uncertainty may well drag on for a while longer”.
“Deadline aside, the next two scheduled Eurogroup meetings this Friday and on May 11th will be the key events upcoming, while the €750m IMF repayment on May 12th is the next significant hurdle”.
Key Quotes
“Greece continues to be the other headline generator at the moment and yesterday we heard that the ECB is looking at proposing an increase to haircuts banks take on the collateral that they post when borrowing from the Bank of Greece in a bid to tighten pressure on ELA funding”.
“Greek press Ekathimerini reported that while the measure has not been formally discussed by the Governing Council, it may be considered should Greece’s leaders fail to convince Euro-area leaders on reforms”.
“Meanwhile, there are various headlines suggesting that the proposed decree forcing local governments to transfer reserves to the Bank of Greece could keep the country afloat until the end of May, although pressure appears to be mounting politically with opposition from various local government officials”.
“With Tsipras due to meet Merkel tomorrow and the Eurogroup meeting scheduled for Friday, a senior euro zone official was quoted on Reuters saying that no deadline will be set for Greece to come up with reforms as doing so leads to brinkmanship in negotiations, suggesting that the uncertainty may well drag on for a while longer”.
“Deadline aside, the next two scheduled Eurogroup meetings this Friday and on May 11th will be the key events upcoming, while the €750m IMF repayment on May 12th is the next significant hurdle”.