FXstreet.com (Barcelona) - About today's Eurogroup meeting that should reach a final decision between the Troika members and Greece, TD Securities analysts look into the details: "The first question is whether the Eurozone will be able to weave together enough half-measures to close the ¬10bn or so funding gap, with a combination of deferring interest payments on EFSF loans; lowering interest rates on those loans (where there are disagreements with how far the rates can be lowered); having the ECB forgo profits on its Greek debt holdings (which not all national central banks are prepared to do); and a debt buyback plan (which becomes less effective the more they talk about it, as Greek bonds rally and they get less bang for their buck)", wrote analyst Jacqui Douglas. "After closing the gap, then there's the issue of whether the IMF will be satisfied with the measures, and willing to live with a Greek debt/GDP ratio of more like 125% by 2020 instead of the originally-planned 120% target", Douglas said, adding that the official sector haircuts demanded by the IMF clash against Eurozone leaders' interests, which could toughen the agreement.

Filed Under:
Forex pairs in this Article »

comments powered by Disqus