ESM: Greece won't need debt relief if it keeps its surplus above 3%/GDP for 20 years - Reuters

Eren Sengezer FXStreet

According to a confidential paper prepared by the European Stability Mechanism, obtained by Reuters, Greece will not need any debt relief from euro zone governments if it keeps its primary surplus above 3 percent of GDP for 20 years.

Key highlights (via Reuters):

Greece would have to keep primary surplus of around 2 pct/GDP until mid-2030s if maximum debt relief offered
Maximum debt relief under consideration is extension of avg weighted maturities by 17.5 yrs from current 32.5 yrs
Maximum debt relief would also cap interest on loans at 1 pct until 2050, limit loan repayments at 0.4 pct of greek GDP
Maximum debt relief would also entail euro zone buying back some 13 bln euros worth of IMF loans to Greece
Under IMF assumptions of future Greek growth, primary surplus, even maximum euro zone debt relief offer is not enough -paper

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD stabilizes near 1.1700 ahead of US data

EUR/USD holds steady at around 1.1700 early Thursday after posting modest daily losses on Wednesday. Improving market mood on easing EU-US trade densions helps the pair keep its footing as market focus shifts to mid-tier data releases from the US.

GBP/USD strengthens above 1.3400 as UK inflation beats forecasts

Following a two-day rally, GBP/USD lost its traction and closed in negative territory on Wednesday after mixed UK inflation data. The pair stays relatively quiet on Thursday and fluctuates in a tight channel above 1.3400 ahead of PCE inflation and Jobless Claims data from the US.

Gold holds above $4,800 after Trump's U-turn on Greenland

Gold stabilizes above $4,800 early Thursday following a sharp decline seen during the Asian session. The global risk sentiment gets a strong boost in reaction to US President Donald Trump's U-turn on Greenland and easing geopolitical tensions, capping XAU/USD's upside.

Top Crypto Gainers: Canton, MYX Finance, Pump.fun rise as the market steadies

Canton, MYX Finance, and Pump.fun are leading the recovery over the last 24 hours as the broader cryptocurrency market takes a breather after sharp losses. Technically, the recovering altcoins are closing toward key resistances as selling pressure eases.

TACO Wednesday and the great market exhale

Markets did not so much trade on Wednesday as they collectively unclenched. After a bruising bout of headline-induced indigestion, every major asset class caught a bid at once. Stocks up. Bonds up. Gold up, then cooling. Crypto rebounding. Crude firming. Even the dollar found its feet.

Axie Infinity extends gains as bullish momentum targets $3

Axie Infinity (AXS) extends its gains by 8%, trading above $2.56 at the time of writing on Thursday, after rallying over 37% this week. The bullish price action is further strengthened by rising whale accumulation volume.