German Government Saved During Greek Crisis

The Greek debt crisis has saved the German government some €100bn (£70bn; $109bn) in lower borrowing costs because investors have sought safety in German bonds, a study has found.
Even if Greece defaults on all its debt, Germany would still benefit, says the German IWH institute.

Greece is hoping to reach a third bailout agreement, worth up to €86bn, with its creditors this week.

Germany has funded €90bn so far and wants tough conditions for a new deal.
‘Thoroughness before speed’

Greece missed two key payments to the International Monetary Fund in June and July, before a deal on a bridging loan was thrashed out by EU leaders.

The terms of the third bailout need to be reached by 20 August, when Greece’s next debt repayment to the European Central Bank becomes due.

via BBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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