Greek 2012 Deal Architect Says Greek Crisis is Off The Table

There are not any issues brewing in China or Greece that could lead to the destabilization of global financial markets, said Charles Dallara—the architect of the 2012 Greek debt restructuring deal.
“Greece is off the table,” assuming that Europe continues its financial support and shows a willingness to be “a bit more generous,” the former managing director at the Institute of International Finance told CNBC’s “Squawk Box” in an interview from Zurich on Tuesday, the eve of the World Economic Forum in Davos, Switzerland.

“Greece has gone through a tremendous period of adjustment. And I think it’s time that Europe recognizes that they’ve done a lot, particularly on the fiscal front,” he added.

While bond yields in Greece and other economically challenged European countries head lower, Dallara said the moves are tied to the “massive flooding of liquidity in the global markets,” rather than dramatically improving economies.

“There’s a disconnect between the fundamentals and market pricing of risk,” he said. “Certainly the risk of default in Ireland and Greece and Portugal and Italy is much lower than it was two years ago. But that doesn’t mean these yields reflect fundamental improvement in the underlying economies.”

via CNBC

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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