Bundesbank Forecasts Greece New Agreement in 2014

German news weekly Der Spiegel reports that the country’s central bank believes international creditors will have to agree a new bailout for Greece by early next year.

The move would come months after Germany’s Sept. 22 general election. Chancellor Angela Merkel’s conservative government has been at pains to appear firm on Greece’s international bailout, which is unpopular with many Germans.

Der Spiegel reports Sunday that the Bundesbank told Germany’s Finance Ministry and the International Monetary Fund that a recent 5.7 billion euros ($7.62 billion) payment to Greece was approved “due to political constraints.”

The central bank reportedly also described the risks of the current rescue program for Athens as “unusually high” and the performance of the Greek government as “hardly satisfying.”

A Bundesbank spokeswoman declined to comment on the report.

via Mainichi

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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 has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. 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
Alfonso Esparza

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