Could Greece be about to default on debt repayment?
Media report suggests Greece will forgo their next bailout payment
by Abi Moses on 30th May, 2017
The Euro has slumped on Tuesday after a report surfaced in the media that Greece could be set to once again create uncertainty within the eurozone.
If Greece cannot agree a debt relief deal with creditors with creditors they are expected to forgo their next bailout payment, that would almost certainly cause them to default on the next instalment of their debt repayment.
James Woods, the Sydney-based global investment analyst at Rivkin, said "The bailout payments are necessary to meet existing debt repayments due in July, so if Greece were to forgo this bailout payment the probability of a default would spike, reopening the discussion around a Grexit from the Euro-zone."
The Euro seemed to have turned the corner after political campaigns in the Netherlands and France threatened the respective nations' position within the eurozone, but now the Greek crisis looks to be resurfacing. Although Woods warned against "reading too much into it", insisting it isn't likely that the nation would opt out of the bailout payment.
Elsewhere, despite public holidays in the USA, UK and China meaning markets experienced thin trade on Monday, Italy's banking index suffered its biggest one-day loss in almost four months, falling 3.4%. The losses contributed to a 0.2% slump in European blue-chip stocks (.STOXXE).
In the UK, the Manchester bombing and Prime Minister, Theresa May's apparent U-turn over social care plans has helped Labour close in the latest polls. The Conservative Party's lead is now down to just six percentage points.
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