Greek Reforms Package to Be Discussed in Brussels Tonight

If negotiations between the Greek government representatives and their Eurozone creditors do not yield progress before the FX market closes

General Economy In Greece
(photo: Bloomberg)

According to recent media reports, Greek government representatives have taken to Brussels to meet with the main creditors of the country and discuss a proposed list of reforms prepared by the crisis response team of the Finance Minister Yannis Varoufakis.

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Unnamed officials cited by several newswires have stated that Greece might run out of money as soon as April 8th. The country is due for a repayment of its International Monetary Fund (IMF) loan on April the 9th. Greece has to find €450 million to pay the tranche.

Meanwhile, the President of the Supervisory Council at the European Central Bank (ECB), Danièle Nouy, commented that the Greek banks remained solvent despite the distressful economic environment in the country.

According to sources inside the Greek government’s administration, Greece is proposing to raise €3 billion in 2015 in the reforms package.

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In previous talks, Greek government officials were reluctant to announce public salaries and pensions cuts, which creditors have been insisting upon. Instead of these, the expectations of some analysts are that Greece will commit to increase its revenue sources by including tax debtors payment plans and possibly some privatizations.

Meanwhile, the day has been turbulent for the Greek government with unofficial reports about the country’s Finance Minister Yanis Varoufakis’ resignation being rebuked by himself on his Twitter account.

Increased uncertainty and lack of confidence in the reform commitments of the Greek government could spark sharp volatility by the end of the trading session, or in early Monday trading in Asia. The news about Greece is being closely followed by market participants traders and brokers alike as Asian Monday morning gaps could result in negative balances for overleveraged clients.

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