17 Feb 2015
Greece can extend the current programme or apply for a new one – DB
FXStreet (Edinburgh) - In light of the recent and disappointing Eurogroup-Greece meeting, analyst at Deutsche Bank George Saravelos remarks the next steps in the negotiations.
Key Quotes
“Eurogroup chair Dijsselbloem has formally confirmed that Europe's preferred path forward is a Greek request to legally extend the current program that expires on February 28th”.
“Such a request needs to materialize by the end of the week, to give time to six national parliaments (inclusive of the Netherlands, Germany and Finland) to pass this extension through into legislation”.
“Failing this deadline Dijsselbloem confirmed that the only option that would then be left to Greece would be a request for a fresh 3rd ESM program”.
“All in all, the starting point therefore remains the same as the one we had outlined a few weeks ago: semantics aside, Greece can choose to either extend the program or apply for a new one”.
Key Quotes
“Eurogroup chair Dijsselbloem has formally confirmed that Europe's preferred path forward is a Greek request to legally extend the current program that expires on February 28th”.
“Such a request needs to materialize by the end of the week, to give time to six national parliaments (inclusive of the Netherlands, Germany and Finland) to pass this extension through into legislation”.
“Failing this deadline Dijsselbloem confirmed that the only option that would then be left to Greece would be a request for a fresh 3rd ESM program”.
“All in all, the starting point therefore remains the same as the one we had outlined a few weeks ago: semantics aside, Greece can choose to either extend the program or apply for a new one”.