All of those endless talks between the representatives of the Greek government and the international lenders now seem to have finally yielded fruit. To be more specific, the Eurogroup, which is the council including the Eurozone finance ministers, approved another tranche of financial aid to Greece during the recent meeting in Brussels on Thursday. This time, they decided to give Athens 8,5 billion euros.
It is interesting to note that the IMF stayed committed to participating in further financing of the Greek economic recovery but didn’t support the measures aimed at easing the tax burden in Greece offered by the Eurogroup. The parties participating in the talks approved the idea put forward by the French finance minister, who offered the lenders to peg the Greek debt to the dynamics of the Greek GDP. According to the minister, in case the Greek economy shows strong economic growth, the debt may be restructured.
The bottom line is, the Greeks avoided a possible default on their foreign debt that could otherwise become a reality this summer. At the same time, international observers count on resolving the contradictions between the IMF and the Eurogroup within the next 12 months. This is when the Greek financing program is expected to end. Some financial experts say that easing the debt load is as important as structural reforms in the economy.
At the same time, the SRP (AO_Zotik and WPR_VSmark) Department of Masterforex-V Academy reports that EURUSD has retraced from bullish wave C of level H8-Daily. However, they say that the bias is still bullish and the current upward scenario still holds true.
