18 Feb 2015
Greece to request bail out extension today - BTMU
FXStreet (Barcelona) - Lee Hardman, Currency Analyst at Bank of Tokyo-Mitsubishi UFJ, comments on the speculation that Greece might request for an bailout extension today on the lines of Moscovici’s plan.
Key Quotes
“It has been reported that the Greek government is to request today an extension of its bail out agreement along the lines of the compromise plan proposed by the European Commission on Monday which it had been ready to sign before it was altered by euro-zone finance ministers.”
“The so called Moscovici plan would allow the Greek government to extend its bail out for four months.”
“The Greek government would have to agree to not roll back reforms, continue to run a primary budget surplus, pledge to pay its creditors in full. In exchange, the Greek government would be given some leeway in deciding which reforms it would agreement.”
“Greece is also insisting that the bailout extension would be in the form of a “loan agreement” rather than the current programme while Germany has stated that there is no legal means for such a loan.”
“As we stated yesterday, the Moscovici plan provides a glimmer of hope that it could be used as the basis for a compromise agreement. However, the euro-zone finance ministers earlier rejection of the Moscovici plan still raises doubts over whether adjustments can be made to reach a compromise by the end of this week to extend financing for Greece.”
“Without an agreement by the end of this week, investor confidence that compromise agreement will eventually reached will be tested which could encourage more selling pressures for the euro.”
Key Quotes
“It has been reported that the Greek government is to request today an extension of its bail out agreement along the lines of the compromise plan proposed by the European Commission on Monday which it had been ready to sign before it was altered by euro-zone finance ministers.”
“The so called Moscovici plan would allow the Greek government to extend its bail out for four months.”
“The Greek government would have to agree to not roll back reforms, continue to run a primary budget surplus, pledge to pay its creditors in full. In exchange, the Greek government would be given some leeway in deciding which reforms it would agreement.”
“Greece is also insisting that the bailout extension would be in the form of a “loan agreement” rather than the current programme while Germany has stated that there is no legal means for such a loan.”
“As we stated yesterday, the Moscovici plan provides a glimmer of hope that it could be used as the basis for a compromise agreement. However, the euro-zone finance ministers earlier rejection of the Moscovici plan still raises doubts over whether adjustments can be made to reach a compromise by the end of this week to extend financing for Greece.”
“Without an agreement by the end of this week, investor confidence that compromise agreement will eventually reached will be tested which could encourage more selling pressures for the euro.”