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27 Jun 2013
Flash: Financing gap emerges in Greece – Investec
FXstreet.com (New York) - The Euro area economy has shown signs that it should stabilize at some stage in H2 this year, but an upturn does not seem imminent, suggests Lee McDarby, Corporate Treasury at Investec.
Of course, Eurozone markets have not been immune to global events – the euro has retraced an earlier rally, seemingly on the shift in rate differentials in the US’s favor. Moreover peripheral bonds have been hit by the general sell-off in government bonds, but also by the weakness in risk assets. According to McDarby, “In Greece more problems have emerged with the departure from the government of one of the three coalition parties and also from a ‘financing gap’ identified by the IMF, which endangers the next tranche of bailout cash and the Fund’s involvement generally.”
Of course, Eurozone markets have not been immune to global events – the euro has retraced an earlier rally, seemingly on the shift in rate differentials in the US’s favor. Moreover peripheral bonds have been hit by the general sell-off in government bonds, but also by the weakness in risk assets. According to McDarby, “In Greece more problems have emerged with the departure from the government of one of the three coalition parties and also from a ‘financing gap’ identified by the IMF, which endangers the next tranche of bailout cash and the Fund’s involvement generally.”