Alex Borzak
Forex news, euro rate. This week Finance Ministers of euro zone will continue negotiations about the future of Greece. Today they are meeting in Brussels for a final approval of the second rescue package for Athens.
At the end of last week, having signed the long-expected contract with private creditors, Greece made important steps on its way to receive rescue measures. This helped to reduce the country’s debt burden by over 100 billion dollars.
Agreement with Greek banks, pension funds, and other private creditors is the most-large-scale transaction in the history of financial market. This was the requirement for receiving a 130 bln. euro rescue package from European Central Bank, European Union, and International Monetary Fund.
The final word rests with Eurogroup, which is supposed to give its consent. The next significant date in a saga about rescuing Greece is March 15th, when IMF head is supposed to assign the sum for saving the fund of euro zone.
Agreement with private creditors was pronounced to be a historic moment in Greece. This was positively met by leaders of euro zone; thus French President Nicolas Sarkozy has even stated that his “problems were resolved”.
Fitch and Moody’s rating agencies call debt restructuring and substitution of existing relations with a nominal value to be bankruptcy. This is the opinion of International Swaps and Derivatives Association, according to which there is a “credit event”.
This means that a 3.2 bln. euro compensation will have to be paid for bankruptcy protection of Greece.
According to Commodity Trading Department of , at the beginning of European trading session euro future will try to make corrections to Friday decline and is being traded above the point of resistance 1.3100. In case of success, it may rise to 1.3150. Downswing is limited by reverse-uptrust (rather small in size) and no supply.
Alex Borzak
