A press conference following Eurogroup talks has just concluded, with what was initially dubbed as meager speculation now officially confirmed – an accord has been reached among eurozone finance ministers to extend the rescue programme for indebted Greece.
Christine Lagarde, managing director of the International Monetary Fund, commented on the terms of the agreement, shedding light on its multi-stage and rather complex nature.
- For starters, Greece will get an extension to the bailout programme, which is by four months instead of the initially requested six months.
- On Monday evening, Greek officials will have to submit an action plan – a list of reforms the country will have to carry out.
- On Tuesday, this list will be reviewed by representatives of the IMF, the ECB and the European Commission.
- On Wednesday, the Eurogroup review is expected.
- By the end of April 2015 a final action plan has to be agreed.
The deal leaves Greece some breathing space and puts off the so-called “Grexit”.
Markets seem to be loving the outcome of today’s talks, but the initial enthusiasm waned a little over the past hour or so. After spiking to 1.1424 amid the speculation of a deal being reached, the EUR/USD has now retreated to 1.1378.
(All times are in GMT). Photo credit: Forex Factory.