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4 Jul 2013
Flash: Greek efforts to appease creditors will go to wire - BBH
FXstreet.com (London) - Brown Brothers Harriman analysts believe that Greek efforts to appease their official creditors, will go down to the wire, as is usually the case.
They note that the real deadline is not end of the week, but really the Eurogroup meeting of finance ministers next week, adding that just as party discipline saw some members of the New Democracy lose their standing, Prime Minister Samaras welcomed a few members back into the fold and this may give the government some more breathing room. They write, “We suspect, though no officials can admit to it, that additional concessions by the official sector (OSI) will ultimately be needed. Some reports suggest that the next EUR8.1 bln aid payment could be distributed in tranches, as Greece’s creditors are reportedly unhappy with the pace of public sector job cuts and want to see more progress before handing over the entire payment. “
They note that the real deadline is not end of the week, but really the Eurogroup meeting of finance ministers next week, adding that just as party discipline saw some members of the New Democracy lose their standing, Prime Minister Samaras welcomed a few members back into the fold and this may give the government some more breathing room. They write, “We suspect, though no officials can admit to it, that additional concessions by the official sector (OSI) will ultimately be needed. Some reports suggest that the next EUR8.1 bln aid payment could be distributed in tranches, as Greece’s creditors are reportedly unhappy with the pace of public sector job cuts and want to see more progress before handing over the entire payment. “