The risk of Greece leaving the eurozone has been reignited as talks about additional bailout funds falter, says Colonial First State Global Asset Management (CFSGAM).
In an insights report for Q1 2015, CFSGAM said that mounting tensions between Greece and its creditors – the European Union, European Central Bank and the International Monetary Fund – have raised the risk of a Greek exit.
Greece needs to unlock emergency funds before its €760 million debt repayment to the International Monetary Fund is due on 12 May.
“Mounting tension between Greece and its creditors have raised the risk of a Greek exit from the eurozone, with Greek 10-year yields rising from 9.75 per cent to 11.63 per cent over the quarter,” CFSGAM said.
Greek deputy prime minister Yannis Dragasakis expects a deal to be reached in early May.
However, Mr Dragasakis said it is likely to be a “minimum agreement”, quoted in The Guardian.
“Now we are going to a minimum agreement with actions that can be taken immediately. But [in the long term] not just any solution will suffice,” Mr Dragasakis said.
“The solution has to be viable.
“After the interim agreement a long discussion about the debt, primary surpluses, investment and growth will follow,” Mr Dragasakis said.
Greece’s left-wing Syriza party was elected on the premise of reducing austerity measures imposed by its creditors.
If Syriza's current list of reforms are approved by its creditors, a third bailout program could be endorsed by eurozone ministers on 11 May.
After much speculation, NAB has appointed its new chief executive following the departure of Andrew Thorburn. ...
Credit rating agency Fitch Ratings has changed its outlook on Westpac and ANZ from “stable” to “negative”, following APRA’s updat...
International investment group Mayfair 101 is launching a new brand to focus on Australian customers and provide diversified international i...