The BBC Outlines 3 Options for Greece

There are differences over the borrowing targets for the government finances, how to meet them – especially on pension cuts and value added tax increases – and whether Greece should receive debt relief.

So what position might a Greek negotiator be taking? And what are the pluses and minuses?

Option 1 is to hold out for a while to see what they can get but they are desperate for a deal and accept that they will give in to the demands of the creditors if that is what it takes to get them to sign on the dotted line.

Option 2 is no surrender – utter determination not to give in and a conviction that the other side will buckle at the last moment.

Option 3 is no surrender, but with the acceptance that the other side might also dig their heels in. That would mean default on the debt payments coming due, perhaps the one owed to the IMF at the end of the month or to the ECB in July.

Read the full article at the BBC

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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