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4 May 2015
Greece’s liquidity constraints – MP
FXStreet (Barcelona) - Dean Popplewell, Director of Currency Analysis and Research at MarketPulse, highlights the key events for Greece ahead – due IMF payment and ECB meeting.
Key Quotes
“This is a big week for Greece when it comes to liquidity. Concerns of a deteriorating liquidity situation seem to be forcing the government to cave into some, but not all, of the demands from its creditors.”
“Greece has a payment due to the IMF (€200m) on May 6 as well as on May 12 (€750m). On Wednesday, the Government will hope to conduct a €6m T-bill auction to rollover a +€1.4b six-month T-bill maturing on May 8. On that day the ECB will be holding its non-policy meeting where haircuts for the ELA collateral is expected to be discussed.”
“A deal is not necessary for the ECB to release payments. The market believes that the cap on the T-bill issuance could be lifted if a Greek deal is on the horizon with its creditors.”
Key Quotes
“This is a big week for Greece when it comes to liquidity. Concerns of a deteriorating liquidity situation seem to be forcing the government to cave into some, but not all, of the demands from its creditors.”
“Greece has a payment due to the IMF (€200m) on May 6 as well as on May 12 (€750m). On Wednesday, the Government will hope to conduct a €6m T-bill auction to rollover a +€1.4b six-month T-bill maturing on May 8. On that day the ECB will be holding its non-policy meeting where haircuts for the ELA collateral is expected to be discussed.”
“A deal is not necessary for the ECB to release payments. The market believes that the cap on the T-bill issuance could be lifted if a Greek deal is on the horizon with its creditors.”