EURUSD remains supported

  • full implantation of Greek debt relief will take a while
  • Measures to reduce debt by 20 pct points of GDP by 2060
  • 2060 forecast contains high degree of uncertainty
  • Greek debt repayment pickups in 2030s, 2040s will be smoothed out
  • Clear that measures will improve Greek debt sustainability
  • Greek swap to fix rates will raise debt costs in short-term

Other comments from Dusselbloem

  • Greece must finalize second review but short-term debt relief not conditional on that
  • clear more work needed to get staff level agreement with Greece
  • greases 3.5% primary budget surplus target goes from 2018

And comments from EU Mocoviici:

  • confident can resolve outstanding Greek issues, notably on labor market
  • Greek economy is in the process of turning the corner, reforms bearing fruit