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10 Apr 2015
Greek liquidity will keep markets vigilant – Danske Bank
FXStreet (Edinburgh) - In the view of Sverre Holbek, Senior Analyst at Danske Bank, the country’s funding will be in the spotlight in the upcoming weeks.
Key Quotes
“Greek debt repayment supports risk sentiment. World equity markets rose yesterday, particularly in Europe where indices hit record levels”.
“The move was catalysed by the confirmation that Greece had repaid a EUR450m loan instalment to the IMF”.
“Also, the ECB yesterday extended the lifeline for Greek banks, increasing the amount of money they can borrow under the Emergency Liquidity Assistance (ELA) by EUR1.2bn to EUR73.2bn”.
“However, sizeable debt repayments lurk ahead, particularly in June when a EUR3.5bn bond redemption falls due”.
“The negotiations with creditors to release the fifth tranche of funding have so far progressed slowly, and it is unclear whether they will be concluded in time to be approved at the 24 April Eurogroup meeting”.
“As a result, the Greek liquidity situation will remain a market theme in the near term and is also likely to receive attention at the ECB meeting next week”.
Key Quotes
“Greek debt repayment supports risk sentiment. World equity markets rose yesterday, particularly in Europe where indices hit record levels”.
“The move was catalysed by the confirmation that Greece had repaid a EUR450m loan instalment to the IMF”.
“Also, the ECB yesterday extended the lifeline for Greek banks, increasing the amount of money they can borrow under the Emergency Liquidity Assistance (ELA) by EUR1.2bn to EUR73.2bn”.
“However, sizeable debt repayments lurk ahead, particularly in June when a EUR3.5bn bond redemption falls due”.
“The negotiations with creditors to release the fifth tranche of funding have so far progressed slowly, and it is unclear whether they will be concluded in time to be approved at the 24 April Eurogroup meeting”.
“As a result, the Greek liquidity situation will remain a market theme in the near term and is also likely to receive attention at the ECB meeting next week”.