1 Jul 2015
Grexit might be avoided despite a ‘No’ vote – Investec
FXStreet (Barcelona) - The Investec Team comments on the key developments surrounding the Greece default issue, and further adds that German Finance Minister has commented that a Grexit might not happen despite a ‘No’ vote in Greece Referendum.
Key Quotes
“Greek society continues to feel the pain of rationed bank withdrawals and pensions, leaving the government looking for a way out of economic ruin after the Greek bailout deal expired overnight when it missed a 1.5 billion Euro payment to the IMF last night.”
“Greece is the first advanced country to fail to repay a loan to the IMF and is now formally 'in arrears' joining previous names such as Sudan and Zimbabwe.”
“The IMF announced last night "We have informed our Executive Board that Greece is now in arrears and can only receive IMF financing once the arrears are cleared" also confirming the IMF had received a request from Greece to extend the payment deadline, which will go to the board "in due course".”
“An 11th hour request by Greek PM Tsipras and his government for a new two year rescue package to tide over their ravaged economy was sternly dismissed by German Chancellor Angela Merkel who was quoted as saying there was “absolutely nothing” to talk about before Sunday's referendum.”
“Despite many key Eurozone members calling the referendum a vote on Greece's Eurozone membership, German Finance Minister Wolfgang Schäuble reportedly added more confusion, telling lawmakers privately that Greece could stay in the Eurozone despite a ‘No’ vote on Sunday. If true, Europe has essentially given the Greek people the green light to vote ‘No’ and likely get a better deal.”
Key Quotes
“Greek society continues to feel the pain of rationed bank withdrawals and pensions, leaving the government looking for a way out of economic ruin after the Greek bailout deal expired overnight when it missed a 1.5 billion Euro payment to the IMF last night.”
“Greece is the first advanced country to fail to repay a loan to the IMF and is now formally 'in arrears' joining previous names such as Sudan and Zimbabwe.”
“The IMF announced last night "We have informed our Executive Board that Greece is now in arrears and can only receive IMF financing once the arrears are cleared" also confirming the IMF had received a request from Greece to extend the payment deadline, which will go to the board "in due course".”
“An 11th hour request by Greek PM Tsipras and his government for a new two year rescue package to tide over their ravaged economy was sternly dismissed by German Chancellor Angela Merkel who was quoted as saying there was “absolutely nothing” to talk about before Sunday's referendum.”
“Despite many key Eurozone members calling the referendum a vote on Greece's Eurozone membership, German Finance Minister Wolfgang Schäuble reportedly added more confusion, telling lawmakers privately that Greece could stay in the Eurozone despite a ‘No’ vote on Sunday. If true, Europe has essentially given the Greek people the green light to vote ‘No’ and likely get a better deal.”