International lenders take a third stab on Monday at reaching an agreement on lowering Greece’s debt to sustainable levels. A positive outcome would pave the way for the release of key aid to Athens and should cement the risk appetite that has resurfaced in markets, well, at least for the short-term, analysts said.
Euro zone finance ministers, the International Monetary Fund (IMF) and European Central Bank (ECB) have failed twice to reach an agreement on Greece and hopes are rising that a deal will be made on Monday.
Analysts said Greece, together with a possible deal to avert a U.S.“fiscal cliff” of looming tax hikes and spending cuts, hold the key to maintaining a resurgence in risk appetite that has boosted equity markets and help send the euro to three-week highs versus the dollar in the past week.
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