Not really news, is that?
There will be a deal, but will their be debt forgiveness (probably not). Without debt haircuts, we’re just throwing good money after bad. Perhaps we’ll have a short-term pop for the euro but I would not expect it to last, based solely on Greek news.
While the details are still under negotiation, the shape of the potential deal involves Greece missing its target of maximum debt of 120 per cent of gross domestic product by 2020 – a benchmark of “debt sustainability” the IMF regards as sacrosanct.But additional debt relief measures would ensure that by 2022 Greece’s debt would fall to less than 110 per cent of GDP.