Greece Expects New Deal by Aug 18

Greece expects to conclude a multi-billion-euro deal with international lenders within two weeks, with the drafting of an accord set to start on Wednesday.

A bailout worth up to 86 billion euros ($94.5 billion), needs to be settled by Aug. 20 if Greece is to pay off debt of 3.5 billion euros to the European Central Bank that matures on that day.

It will be the indebted nation’s third bailout since 2010, designed to stave off bankruptcy and keep the country from toppling out of the euro zone.

“The first phase of negotiations ends today and the second phase starts, which really contains the details of drafting (the deal),” Olga Gerovasili, the government spokeswoman, said on Tuesday, speaking of discussions launched with lenders in the last week of July.

The drafting of the accord would start on Wednesday, Gerovasili told Skai TV station.

European Economic Affairs Commissioner Pierre Moscovici has said that, while ambitious, a deal is possible in August. Past negotiations between Greece and its lenders have proved tortuous.

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