Greek PM Alexis Tsipras said that the creditors did not accept Greece’s offers. This contradicts the optimism on the offers made on Monday and ahead of the Eurogroup meetings later today.
EUR/USD dropped below 1.1180 but bounces back up. The common currency remains under pressure.
Update: the euro is beginning to feel the pressure in a more pronounced manner, falling to 1.1190.
In the meantime, meetings are scheduled in Brussels between ECB President Mario Draghi, IMF MD Christine Lagarde, EC president Jean-Claude Juncker and Tsipras of course.
In addition, Tsipras faces opposition at home with internal opposition to the proposals he made. The government offered a strive towards a balanced budget that mostly consists of tax hikes, but also a cut to defense spending.
We already know that the IMF previously vetoed an offer to make cuts to the military, so that could be the sticking point.
Stock markets are falling across Europe, a reversal to the optimism seen on Monday. Yields on German bonds are falling.
Update: now there are reports that it is actually Greece that backtracked on some offers it had already made.
This is looking messy and it’s unclear if a deal will be reached tonight, even if talks go deep into the night:
Oye… RT @Elbarbie Doesn’t seem we are going to have a Staff Level Agreement tonight. #Eurogroup #Greece
— Yannis Koutsomitis (@YanniKouts) June 24, 2015
The good news from today is a report that the ECB did not raise the ELA today, different from previous moves to raise the emergency assistance. And the lack of raise came for a good reason: money was actually coming back into the Greek banking system.
