EU leaders’ pressure on Greece is working

By FxPro

After much delay, the EU leaders became more aggressive about Greece’s future if a deal doesn’t come soon, suggesting an inevitable default as € 14.5B in bond repayments are due in March 20.

Greece has to meet Troika’s demands on minimum wage and pensions reduction, as well as public service staff, which are proving difficult to get accepted by the other parties and the Greek people that is striking nationwide against the austerity.

News are that a Greek deal is now imminent, waiting to get signed by the national leaders. However, FxPro analysts say that even with an approval, Greece will be under rigid scrutiny: “Europe and the IMF are now insisting that most of any fresh bailout money be placed into an escrow account specifically earmarked to pay off bond-holders. Also, bailout funds for Greece would only be released once Athens delivers on reform demands”, says Michael Derks.

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