Greece has submitted the official request for an extension of the loan. The details and conditions still aren’t clear. The Eurogroup meets tomorrow, Friday the 20th, to discuss it. Update: some details are emerging.
Will they accept or reject it? In the meantime, EUR/USD seems skeptic and slides back below 1.14, still above support.
Update: EUR/USD down as Greek capitulation not enough for Germany – drama continues
The head of the Eurogroup Jeroen Dijsselbloem was quick to post on Twitter that he received the Greek request for a six months extension, without details about the content. The meeting is held in Brussels on Friday, 15:00 local time, which is 14:00 GMT.
Here are some more details, via the Guardian live blog:
Reuters snaps, based on a conversation with a Greek government official:
- 19-Feb-2015 10:14 – GREECE IS COMMITTED TO FISCAL BALANCE DURING INTERIM PERIOD UNDER REQUESTED LOAN AGREEMENT EXTENSION – GREEK GOVT OFFICIAL
- 19-Feb-2015 10:15 – GREECE COMMITTED TO REFORMS IMMEDIATELY ON TAX EVASION AND CORRUPTION- GOVT OFFICIAL
- 19-Feb-2015 10:16 – GREEK PROPOSAL INCLUDES MEASURES TO DEAL WITH HUMANITARIAN CRISIS AND KICK START ECONOMY-GOVT OFFICIAL
- 19-Feb-2015 10:17 – GREEK GOVT’S SIX MONTH EXTENSION TO GIVE GOVT ROOM TO PROCEED WITH NEGOTIATIONS FOR A NEW GROWTH DEAL OVER 2015-2019 – GOVT OFFICIAL
- 19-Feb-2015 10:17 – GREEK GOVT OFFICIAL SAYS NEW DEAL WILL ALSO INCLUDE AGREEMENT ON DEBT REDUCTION
- 19-Feb-2015 10:17 – GREEK GOVT OFFICIAL SAYS SEEKING DEBT REDUCTION DEAL IN LINE WITH 2012 EUROGROUP AGREEMENT
However, if we look at the reaction of the euro and also at this report, it is not time to celebrate, not yet:
#Greece, Creditors ‘Still Somewhat Apart’ on Bailout Extension Letter -Official to DJ
— Yannis Koutsomitis (@YanniKouts) February 19, 2015
Earlier, there was talk about the ECB asking Greece to announce capital controls, a move that by itself could trigger a bank run This was later dismissed by the central bank.
Here is the recent slide on the chart:
More:
