12 May 2015
Greece makes payment to IMF, however concerns still remain – Investec
FXStreet (Barcelona) - Jonathan Pryor, Head of FX dealing at Investec, mentions that although Greece made the due payment to IMF and succeeded to gain two weeks of leeway, fresh concerns are of Grexit are starting to rise.
Key Quotes
“In other news, Greece managed to make the EUR750mn payment to the IMF yesterday, a day earlier than required. There were fears that the Greek authorities might use the payment as a bargaining tool and the fact that Athens has decided not to use this brinkmanship tactic is a relief as it gives Greece another 2-weeks of leeway before the next large repayment is due to the IMF. Two weeks is not a large amount of time however and EURUSD’s move back into the 1.11s clearly highlights that there are concerns starting to rise again that Greece might have to actually leave the Eurozone.”
“Reports suggest that Germany is coming round to the idea that Greece may need to hold a referendum on EZ membership. A referendum appears to be an option for the Syriza leadership to deflect accountability for not delivering on promises, albeit an unpopular one.”
Key Quotes
“In other news, Greece managed to make the EUR750mn payment to the IMF yesterday, a day earlier than required. There were fears that the Greek authorities might use the payment as a bargaining tool and the fact that Athens has decided not to use this brinkmanship tactic is a relief as it gives Greece another 2-weeks of leeway before the next large repayment is due to the IMF. Two weeks is not a large amount of time however and EURUSD’s move back into the 1.11s clearly highlights that there are concerns starting to rise again that Greece might have to actually leave the Eurozone.”
“Reports suggest that Germany is coming round to the idea that Greece may need to hold a referendum on EZ membership. A referendum appears to be an option for the Syriza leadership to deflect accountability for not delivering on promises, albeit an unpopular one.”