17/08/2015 13:06
The Athens Stock Exchange is in positive territory on Monday, after the Eurogroup agreement for Greece, while the bond yields are moving downwards.
The eurozone finance ministers reached a political agreement for a package of €86bn to Greece.
With regard to the banks, there will be a stress-test, followed by recapitalization. There will be bail-in of the bondholders but not depositors.
Eurogroup President Jeroen Dijsselbloem made specific reference to privatizations, noting that debt sustainability is a crucial issue.
For the participation of the IMF, certain reforms must be implemented on behalf of Greece, especially in the pension system. The Greek debt must also be restructured to become sustainable.
The first tranche is €16 bn to cover Greece's financing needs. The tranche will be given in several stages starting with €13 bn, and later, with one or more portions to be paid depending on the implementation of the measures. Another €10 bn will be allocated for the recapitalization of banks through a different process.
The agreement on Greece pushed ATHEX up. The general index is currently at 685.25 points and at +1.68% while FTSE goes up 1.66% to 202.59 points.
Moody’s, in their weekly bulletin, say that despite that the new bailout program for Greece is credit positive, “it is highly uncertain whether the Greek authorities have the capacity to achieve agreed objectives and to abide by its creditors’ conditions”.
The yield on the ten-year Greek bond fell on Friday to 9.9985% from 19.26% on July 8, the lowest since early March. Today it is falling to 8.96%. The yield on the four-year bond is at 10.5% from 11.6% on Friday and 36.2% on July 8.
The eurozone finance ministers reached a political agreement for a package of €86bn to Greece.
With regard to the banks, there will be a stress-test, followed by recapitalization. There will be bail-in of the bondholders but not depositors.
Eurogroup President Jeroen Dijsselbloem made specific reference to privatizations, noting that debt sustainability is a crucial issue.
For the participation of the IMF, certain reforms must be implemented on behalf of Greece, especially in the pension system. The Greek debt must also be restructured to become sustainable.
The first tranche is €16 bn to cover Greece's financing needs. The tranche will be given in several stages starting with €13 bn, and later, with one or more portions to be paid depending on the implementation of the measures. Another €10 bn will be allocated for the recapitalization of banks through a different process.
The agreement on Greece pushed ATHEX up. The general index is currently at 685.25 points and at +1.68% while FTSE goes up 1.66% to 202.59 points.
Moody’s, in their weekly bulletin, say that despite that the new bailout program for Greece is credit positive, “it is highly uncertain whether the Greek authorities have the capacity to achieve agreed objectives and to abide by its creditors’ conditions”.
The yield on the ten-year Greek bond fell on Friday to 9.9985% from 19.26% on July 8, the lowest since early March. Today it is falling to 8.96%. The yield on the four-year bond is at 10.5% from 11.6% on Friday and 36.2% on July 8.
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