FXStreet (Barcelona) – Lee Hardman, Currency Analyst at Bank of Tokyo-Mitsubishi UFJ, shares their observations regarding the Greece repayment.
“An unnamed Greek official has stated that government will not make the EUR1.6 billion repayment due to the IMF today. The credit rating agencies have already reported that a missed payment to the IMF today would not constitute a formal default as it is an official entity.”
“Euro-zone officials have indicated as well that it will not affect other official loans owed by Greece. However, it has been reported that if IMF Director Lagarde tells her board that Greece has defaulted, then the European Financial stability Facility would have to decide among three options: i) to claim the funds Greece owes to the EFSF, ii) waive the EFSF’s right to the money, or iii) invoke a “reversion of rights” that would avid an immediate claim while maintaining the option to take such a step.”
“It also remains unclear how the ECB will react to a missed payment to the IMF which may have an impact on their decision tomorrow when setting the provision of emergency liquidity assistance to Greek banks.”
Lee Hardman, Currency Analyst at Bank of Tokyo-Mitsubishi UFJ, shares their observations regarding the Greece repayment.
(Market News Provided by FXstreet)