Michael Every, Senior Asia-Pacific Strategist at Rabobank, explains that there was no blinking in Greece yesterday, where the government successfully passed another set of austerity measures to please its creditors, which should now allow Euro-area finance ministers to extend and pretend sign off on the official conclusion of the bailout reviews and approve yet another loan in order to allow Greece to repay EUR6bn in July.
“Indeed, a further tapping of global bond markets --despite Greece’s crippling high-and-rising level of public debt, which the IMF has continuously flagged-- may even be on the cards later this year, apparently. The Greek economy, secondary to this giant game of financial pass-the-parcel, looks unlikely to benefit significantly from yet more public-spending cuts, at least based on the track record that these have had so far. Nonetheless, crisis postponed again, which is about the best we can usually hope for post-GFC – especially given politics is happily filling the gap where it can.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.