3 Feb 2015
Greek to request debt-swaps – Danske
FXStreet (Barcelona) - The Danske Bank Research Team comments that Greece would request for debt-swaps to ease its burden and not call for a debt write-off.
Key Quotes
“The new Greek government has revealed proposals for an agreement with its creditors. According to finance minister Varoufakis the government would not call for a headline write-off of debt but instead request debt swaps to ease the burden.”
“In return it will maintain the reform agenda and the primary budget surplus – even if it meant Syriza would not fulfil all the public spending election pledges.”
“The goal is a four-month bridging programme under which the ECB promises liquidity to Greek banks on favourable terms.”
“Greece’s openness to cooperation is likely to support peripheral markets today. Yesterday, there was some contagion from Greece to other peripheral countries following the comments over the weekend, which initially seemed to increase the risk of Grexit.”
Key Quotes
“The new Greek government has revealed proposals for an agreement with its creditors. According to finance minister Varoufakis the government would not call for a headline write-off of debt but instead request debt swaps to ease the burden.”
“In return it will maintain the reform agenda and the primary budget surplus – even if it meant Syriza would not fulfil all the public spending election pledges.”
“The goal is a four-month bridging programme under which the ECB promises liquidity to Greek banks on favourable terms.”
“Greece’s openness to cooperation is likely to support peripheral markets today. Yesterday, there was some contagion from Greece to other peripheral countries following the comments over the weekend, which initially seemed to increase the risk of Grexit.”