10 Jul 2015
Greece reform proposal: Tsipras bends down on several fronts – Investec
FXStreet (Barcelona) - The Investec Team shares their observations regarding recent developments surrounding the Greece crisis, and further comment on the key risks ahead.
Key Quotes
“The Greek government sent its proposal to creditors late last night. It asks for €53.5bn as part of a 3-year bailout. The proposal hasn’t been released publically although reports suggest that it is close to the those put forward by creditors late last month, excluding debt ‘haircuts’ but including ‘re-profiling’. Indeed, it looks as if Greece has backed down on several fronts including on pension reforms and VAT changes for the islands.”
“We have heard little by way of an official response from creditors, but given the movement of the proposals towards the creditors’ plan there looks to be a decent chance this is accepted as basis to work up a more detailed program plan and progress the ESM bailout application.”
“The key meetings at the weekend are a Eurogroup discussion Saturday and the make or break EU Summit Sunday. Ahead of these however the Greeks are holding a long parliamentary session today and a vote on immediate actions that need to be carried forward before any cash can be disbursed. Although the head of Tsipras’s junior collation ally did not add his signature to the proposal, nor did the energy minister, it is expected that these proposals will pass in the Greek parliament today, helped by opposition backing, edging Greece closer towards a position where it maintains its position within the single currency.”
Key Quotes
“The Greek government sent its proposal to creditors late last night. It asks for €53.5bn as part of a 3-year bailout. The proposal hasn’t been released publically although reports suggest that it is close to the those put forward by creditors late last month, excluding debt ‘haircuts’ but including ‘re-profiling’. Indeed, it looks as if Greece has backed down on several fronts including on pension reforms and VAT changes for the islands.”
“We have heard little by way of an official response from creditors, but given the movement of the proposals towards the creditors’ plan there looks to be a decent chance this is accepted as basis to work up a more detailed program plan and progress the ESM bailout application.”
“The key meetings at the weekend are a Eurogroup discussion Saturday and the make or break EU Summit Sunday. Ahead of these however the Greeks are holding a long parliamentary session today and a vote on immediate actions that need to be carried forward before any cash can be disbursed. Although the head of Tsipras’s junior collation ally did not add his signature to the proposal, nor did the energy minister, it is expected that these proposals will pass in the Greek parliament today, helped by opposition backing, edging Greece closer towards a position where it maintains its position within the single currency.”