Greece is again on the verge of default

Greece is again on the verge of default

The Greek question is still relevant. In order to overcome the problems Athens need the promised assistance of 86 billion Euros. But lenders want to make sure that Greece is on the path of reforms.

In general, the situation in Greece looks like some popular series. All the problems are exacerbated, once the term of payment of debt is approaching. Thus, attention to the problem from the side of market players is sufficient to increase dramatically. The media is beginning to actively discuss both the problem and the options for its exacerbation, up to a default of Greece and its exit from the euro zone.

Currently, lenders assess the reforms that were carried out in Athens for a year. At the same time, the Greek government is experiencing increasing difficulties with the budget. Pensions and salaries are paid in full size in May. Perhaps this will be done in June also. But on July 20 it is necessary to repay the bonds in two billion Euros. And here’s where the significant problem occur.

A possible default of Greece has always been relevant. All previous times were only a postponement. And now this problem is very urgent. This is understood by all, including the IMF. No wonder, that Christine Lagarde cares that much about the lenders to deal with the question of restructuring Greek debt. Moreover, it must be done as quickly as possible.

Europe now has enough problems besides Greece. The refugee situation is heating up. In June will be a referendum regarding Britain's membership in the EU. The opinions of experts agree on one thing - currently the European Union does not need the aggravation of the Greek problem. Moreover, they are extremely dangerous.

This is probably one of the reasons why the Eurogroup is committed to resolve the issue as soon as possible and without any loss. The EUR officials already say that negotiations for Greece are almost complete.

However, there is another problem. Despite the fact that the IMF supports the salvation of the Greek problem, the organization, on the other hand, is not ready to make concessions. The fact is that despite the fact that Greece has carried out reforms, they are not in time. Therefore Monetary Fund believes that the budget surplus of 3.5 per cent can not be achieved by 2018.

Moreover, the IMF offers Greece to develop a package of emergency measures and to reduce costs even more. And it must be done prior to the allocation of the aid tranche. Besides, the meeting of the Eurogroup, which was to be held in April this year, was cancelled at the last minute. Despite the fact that lenders have agreed to allocate more than five billion Euros in aid, questionable is the allocation of more than three billion Euros for a package of emergency measures.

And in Greece the situation is no longer so, as it was before. If Tsipras originally had support from the government and parliament and both by the Greek people, now unpopular measures have led to the fact that the Prime Minister is beginning to lose its electorate. Currently 53 MPs has openly criticized Tsipras’s actions. Probably, the situation will continue to worsen.

In addition, according to the surveys, SYRIZA has already lost the confidence of voters. Now the leadership belongs to the "New Democrats"party.

The situation remains tense. The Eurogroup is ready to allocate the next tranche of aid, but do not want to do this without the IMF. The IMF, in turn, is also not in a hurry, waiting for clearer projections and steps taken by the Greek government.

Naturally, this cannot but affect the Euro. In the near future we can expect significant fluctuations in this currency. This is a great opportunity to make money for binary options traders. Follow the news and be the first.


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