{"id":17753,"date":"2018-06-22T18:41:34","date_gmt":"2018-06-22T15:41:34","guid":{"rendered":"https:\/\/bestinsurance.gr\/a1\/?p=17753"},"modified":"2018-06-22T18:41:34","modified_gmt":"2018-06-22T15:41:34","slug":"with-greek-debt-deal-in-pocket-will-tsipras-now-wear-a-tie","status":"publish","type":"post","link":"https:\/\/bestinsurance.gr\/a1\/archives\/17753","title":{"rendered":"With Greek Debt Deal in Pocket, Will Tsipras Now Wear a Tie?\u00a0"},"content":{"rendered":"
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With Greek Debt Deal in Pocket, Will Tsipras Now Wear a Tie?<\/h1>\n<\/div>\n
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  • Greek PM promised he\u2019d wear Renzi\u2019s tie after debt relief<\/li>\n
  • Largarde says IMF has reservations about long-term debt path<\/li>\n<\/ul>\n<\/section>\n
    By\u00a0Marcus Bensasson\u00a0and\u00a0Sotiris Nikas(Bloomberg) —<\/p>\n<\/section>\n
    Now that Greece\u2019s creditors have reached a landmark debtdeal, there\u2019s one question on Greek lips: Will\u00a0Alexis Tsipras\u00a0put on a tie?That\u2019s what the famously tie-less Greek prime minister had pledged to do if and when Europe came up with a viable solution to the country\u2019s debt burden. In February 2015, just days after the left-leaning firebrand was swept to power pledging to tear up the country\u2019s austerity plans, he was presented with a tie by Italy\u2019s then-Prime Minister\u00a0Matteo Renzi.<\/p>\n

    Tsipras, still tie-less, survived the turmoil of the early months of his government by agreeing to creditor demands for more fiscal belt-tightening and a new bailout. That plan is set to expire in two months, and euro-area finance ministers early Friday concluded a package of debt-relief measures to help Greece survive without a lifeline.<\/p>\n

    \u201cIt\u2019s a win-win for both Tsipras and the European creditors,\u201d said\u00a0Wolfango Piccoli, co-president of consultants Teneo Intelligence in London. \u201cThe debt relief deal will allow Tsipras to claim victory at home. At the same time, the European partners can frame Greece\u2019s exit as a success, and most importantly, Athens will not be on the agenda for a while.\u201d<\/p>\n

    Tsipras said at a meeting with President Prokopios Pavlopoulos Friday that the \u201chistoric\u201d agreement makes Greece\u2019s debt sustainable, allowing the country to return permanently to markets, and that the country will keep its agreed reforms. In a reference to the tie, \u201cbets must be honored,\u201d he added, without providing further details of when or where he will wear the garment.<\/p>\n

    Bonds Rally<\/h3>\n

    Under the agreed debt-relief plan, maturities on 96.6 billion euros ($112 billion) of loans Greece has received from its second bailout would be pushed out by 10 years. The extension will be accompanied by a 10-year grace period in interest and amortization payments on the same loans. Creditors also agreed to disburse 15 billion euros aimed at helping Greece repay arrears, finance maturing debt and build up a cash buffer of 24.1 billion euros<\/p>\n

    \u201cThe deal is good news for Greece and on the optimistic side of what was expected,\u201d said\u00a0Athanasios Vamvakidis, a strategist at Bank of America Merrill Lynch in London. \u201cGreece buys more time and the debt becomes sustainable, at least on paper. The deal also includes a clear post-program monitoring framework to make sure Greece sticks to the targets. Markets are reassured for now. But it is up to Greece to succeed. Growth is the key.\u201d<\/p>\n

    The government will wait to see how investors react to the deal in order to decide when it issues a new bond, following its return to the markets last year. Greek stocks and bonds rose on Friday, with the yield on 10-year notes falling 23 basis points to 4.09 percent at 10:43 a.m. in Athens.<\/p>\n

    If markets welcome the new terms, a new bond sale could happen as soon as July, according to a person familiar with the matter, who asked not to be identified since no decision has been made. Greece isn\u2019t under liquidity pressure to issue new debt, and the government can wait until September to review its strategy, the person said.<\/p>\n

    Growth Needed<\/h3>\n

    Creditors acknowledge that the deal doesn\u2019t solve the problem forever, promising to revisit the issue in 2032. Also, European Central Bank PresidentMario Draghi\u00a0stopped short of declaring Greek debt sustainable. International Monetary Fund Managing Director\u00a0Christine Lagarde\u00a0expressed the fund\u2019s reservations about the country\u2019s long-term debt path.<\/p>\n

    \u201cIf Greece grows by 2 percent in the decades ahead, things will be easy; but if it grows by 1 percent, nothing will add up,\u201d said Vamvakidis. \u201cThis means Greece needs not only to avoid backtracking from what has been achieved under its long adjustment program, but to get serious about structural reforms to attract investment and increase potential growth. It is not time for complacency.\u201d<\/p>\n<\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

    With Greek Debt Deal in Pocket, Will Tsipras Now Wear a Tie? Greek PM promised he\u2019d wear Renzi\u2019s tie after debt relief Largarde says IMF has reservations about long-term debt path By\u00a0Marcus Bensasson\u00a0and\u00a0Sotiris Nikas(Bloomberg) — Now that Greece\u2019s creditors have reached a landmark debtdeal, there\u2019s one question on Greek lips: Will\u00a0Alexis Tsipras\u00a0put on a tie?That\u2019s<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[2],"tags":[],"class_list":["post-17753","post","type-post","status-publish","format-standard","hentry","category-2"],"jetpack_publicize_connections":[],"_links":{"self":[{"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/posts\/17753","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/comments?post=17753"}],"version-history":[{"count":1,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/posts\/17753\/revisions"}],"predecessor-version":[{"id":17755,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/posts\/17753\/revisions\/17755"}],"wp:attachment":[{"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/media?parent=17753"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/categories?post=17753"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/tags?post=17753"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}