9 Dec 2014
Greek presidential election brought forward - BTMU
FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ notes that Greek presidential election were bought ahead by two months after eurozone finance ministers pointed out that Greece didn’t complete the necessary reforms required for the final bailout payment.
Key Quotes
"Greek Prime Minister Samaras announced yesterday that he has brought forward the timing of the presidential election by two months after euro-zone finance ministers concluded Greece had not completed all the reforms necessary to obtain its last bailout payment. The first round of the presidential vote will now take place on the 17th December with further rounds on the 23rd and 29th December."
"There is a material risk that the government will fail to secure enough support for its presidential candidate which would force Prime Minister Samaras to call a general election."
“Heightened political uncertainty is already reflected in the recent under-performance of Greek government bonds. The yield on the 10-year Greek government bond has increased from around 5.5% in September to over 7.0% in contrast to the continued decline in yields on other peripheral government bonds in advance of the likely implementation of QE by the ECB."
Key Quotes
"Greek Prime Minister Samaras announced yesterday that he has brought forward the timing of the presidential election by two months after euro-zone finance ministers concluded Greece had not completed all the reforms necessary to obtain its last bailout payment. The first round of the presidential vote will now take place on the 17th December with further rounds on the 23rd and 29th December."
"There is a material risk that the government will fail to secure enough support for its presidential candidate which would force Prime Minister Samaras to call a general election."
“Heightened political uncertainty is already reflected in the recent under-performance of Greek government bonds. The yield on the 10-year Greek government bond has increased from around 5.5% in September to over 7.0% in contrast to the continued decline in yields on other peripheral government bonds in advance of the likely implementation of QE by the ECB."