German FinMin Says Greek Deal not Imminent

German Finance Minister Wolfgang Schaeuble told Reuters the Greek government’s optimism about clinching a cash-for-reforms deal with its lenders in days was not backed up by negotiations and he could not rule out Greece becoming insolvent.

Greek Prime Minister Alexis Tsipras’s leftist government hopes a deal with foreign lenders is imminent, with Finance Minister Yanis Varoufakis saying on Monday that an agreement could be reached within a week.

But Schaeuble poured cold water on this idea, saying reports from the international institutions involved in negotiations with Athens suggested talks were progressing “very hesitantly”.

“What I know from discussions with the three institutions does not back up the optimism arising from announcements from Athens,” Schaeuble said in an interview published on Thursday.

“There is not yet any substance to the mere announcement that we are closer to an agreement. This is still within the realms of atmosphere,” he added.

Greece’s European Union and IMF lenders say talks are moving too slowly for a deal in the coming days.

via Reuters

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza