Efforts to forge an agreement regarding the latest instalment of Greek aid have been a little lacking in resolution in recent weeks and the Euro has suffered as a result of the uncertainty.
The European Union and International Monetary Fund came to loggerheads, disagreeing over whether or not to extend Greece’s debt targets. Although a two-year extension was eventually settled on the IMF (and particularly the fund’s director Christine Lagarde) was angered by the move to the point where their continued financing of Greece was brought into question.
Since then Lagarde has asserted that the IMF will not leave the talks and that she will personally enter them feeling ‘patient and resilient’.
However, how to meet the indebted country’s gaping fiscal needs without putting up additional money remains a complex, thorny issue. Particularly as European leaders have refused to ask parliaments for further funding.
But resolution could be on the horizon, in some form at least.
Last week Luxembourg Prime Minister Jean-Claude Junker promised the world a ‘definite decision’ regarding the release of the next aid payment, and ahead of tomorrow’s meeting of Eurozone Finance Ministers a group of prominent European finance officials gathered in Paris in order to preliminarily hash out the problem.
Officials from the Eurozone’s largest economies, France and Germany, met with officials from Spain and Italy to discuss filling Greece’s gaping financial hole by lowing rates on the struggling nation’s bailout loans and lengthening maturities on Greek debt.
An economist with London-based Standard Chartered asserted that tomorrow’s talks, which will involve financial representatives from all 17-nations within the Eurozone, are ‘likely to be tense as all players set out their positions. Greece’s debt is likely to be kicked further down the road, but we could see some constructive statements.’
As of 14:45 pm
The Pound to Euro exchange rate is currently trading at 1.2446
The Pound to US Dollar exchange rate is currently trading at 1.5902
The Pound to Australian Dollar exchange rate is currently trading at 1.5275
The Euro to US Dollar exchange rate is currently trading at 1.2774
The Euro to Pound exchange rate is currently trading at 0.8032
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