Return of Grexit Fears Unlikely – Deutsche Bank
Research Team at Deutsche Bank, suggests that a return of Grexit fears as being unlikely over the coming weeks.
Key Quotes
“The
ongoing disagreements between Greece, the IMF and European creditors
suggest that there remains some way to go until agreement is reached,
they highlight two important factors as dampening risks. First, both the
refugee crisis and the Brexit referendum significantly increases the
costs to Europe of a crisis in Greece. Second, the Syriza government has
a greater commitment to the program with PM Tsipras having obtained
voters' support for continued cooperation with Europe last September and
espousing the benefits of co-operation with European partners over the
last six months.
The perhaps greatest risk for now is that debt
relief negotiations are not completed in time for Greece's July ECB
redemptions, once again deferring full IMF participation in the program
and leaving some of Greece's medium term issues – including the full
lifting of capital controls on the banking system – unresolved.”
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