Greece is supposed to pay off its bonds that amount to 3.1 billion euro by August 20, 2012. Athens may postpone such payment, which will mean selective default that EU, ECB, and IMF are trying to avoid since May 2010. At this point, European Central Bank possesses the portfolio of bonds.
This spring private investors have agreed to restructure Greek debt with debt relief rate amounting to 80% of nominal value. However, members of EU and ECB insist on total debt repayment, which is 75% from 300 billion euro.
How can selective default be avoided? Either by partial debt relief, or new borrowing, or issuing new government bonds, buyers of which are yet to be found.
Very little time is left, as by August 20 EU and Greek government are to find a solution.
According to the specialists of the System of Early Prediction Sub-department of , at Forex market EURUSD has finished forming h4 wave А as a part of Daily down wave С. Correctional upward movement to wave B is to be expected. Lower timeframe m15 shows the formation of wave А, which is followed by wave В.
Analysis by: Alex von Stachelkopf, analyst of EURUSD Forex Department, trader of SRP Sub-department of Masterforex-V Academy
