Greek turmoil continues
No agreement is yet in place as a Grexit looms
Greece has been dominating headlines the last couple of weeks as a potential exit from the Eurozone looks more and more likely. According to the Greek Finance Minister Yanis Varoufakis, Greece will make their next scheduled payment to the IMF on June 5th as hope for an agreement to be reached with Greece’s creditors before this date continues. However, this agreement is still not guaranteed and market panic still surrounds the Euro until this agreement is met. Markets are worried that if we are to see a Greek exit it could trigger a stampede from the Eurozone’s other indebted nations.
Conflicting headlines in the Greece saga have continued this week, with the feeling that the IMF were the least happy to sign off on the Greek terms for further support. Reports also emerged that an agreement between Greece and international lenders was being discussed, specifically a staff level agreement. After months of negotiations, nothing concrete seems to be emerging from any talks so far as Athens argue over the measures to meet the reform requests from the Troika, over further pension cuts and changes to their labour market.
Euro volatility will continue
The outcome is uncertain with IMF President Christine Lagarde suggesting that a “Grexit” is possible. The Greek story still has a long way to go and is likely to dominate headlines for weeks. There is still no deal to date and contradicting comments from all parties continue. The Euro will remain extremely volatile as Greek uncertainty builds and this issue remains unresolved.