With the Greek bank deposit run continuing apace and given the civil servant and pension payments due this week, the Greek government is said to be ready to deliver its list of reforms by Monday. Once this list has been submitted, a special Eurogroup meeting should be called to discuss the next steps.
If these reforms prove sufficiently far-reaching, a rapid - but maybe only partial - release of funds may be decided. This disbursement would arrive on time for the IMF loan repayment on 9 April of €460m. However, given the still tense recent discussions between Greece and the Institutions, this is far from being a done deal and a late IMF paymentcannot be ruled out.
To limit the accelerated erosion of deposits at Greek banks, the Eurogroup may even discuss the imposition of capital controls in Greece - in a similar vein to what was done in Cyprus in 2013. This would only buy some more time. In any case, even if a deal is not reached this week, the Eurogroup and Greece will need to come to an agreement rapidly on the reform process to move to the next topic, i.e. the negotiation for the post-current bailout.
"We believe Greece will need another bailout (worth €60-80bn) for the next three years as market access is set to remain closed for Greece unless a significant haircut to its debt is decided (i.e. Official Sector Involvement)", says Societe Generale.
If these reforms prove sufficiently far-reaching, a rapid - but maybe only partial - release of funds may be decided. This disbursement would arrive on time for the IMF loan repayment on 9 April of €460m. However, given the still tense recent discussions between Greece and the Institutions, this is far from being a done deal and a late IMF paymentcannot be ruled out.
To limit the accelerated erosion of deposits at Greek banks, the Eurogroup may even discuss the imposition of capital controls in Greece - in a similar vein to what was done in Cyprus in 2013. This would only buy some more time. In any case, even if a deal is not reached this week, the Eurogroup and Greece will need to come to an agreement rapidly on the reform process to move to the next topic, i.e. the negotiation for the post-current bailout.
"We believe Greece will need another bailout (worth €60-80bn) for the next three years as market access is set to remain closed for Greece unless a significant haircut to its debt is decided (i.e. Official Sector Involvement)", says Societe Generale.
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