After months of wrangling, Greece has managed to secure a new bailout package for a three year time horizon worth between EUR 82-86 billion in order to fix lingering issues and recapitalize banks. Creditors, after dismissing last week’s proposals as insubstantial, agreed in principle to Greece pledging assets to an independent fund to be used as collateral against the bailout. While this may avert a crisis Greece having to exit the Euro Area, it means further austerity measures in tow for the nation. This is a dangerous political gambit as Tsipras still needs approval from the Greek Parliament to move forward with the deal which will likely prove very unpopular in his own party after embracing austerity following months lambasting the concept. Overnight losses in the Euro quickly reversed as renewed optimism that the distance between negotiating parties narrowed was viewed positively by market participants before renewed downside hit the common currency.
Euro Summit Reaches Agreement
Daily Analysis - 13/07/2015