From the FXWW Chatroom: Greece and its creditors secured a deal yesterday that allows the next ESM disbursement (EUR 8.5bn in total) to be released in time for the ECB redemptions in July. The IMF also decided to approve in principle a 14-month precautionary Stand-by-Arrangement for Greece to the tune of USD 2bn. Greek bonds remain QE-ineligible for now, but the QE door stays open.
Greece’s European partners offered additional clarity with regards to the debt relief measures they are willing to implement, in line with the guidelines of last May’s Eurogroup. These include a growth-adjustment mechanism for the re-profiling of EFSF loans, with an eye to accommodate the substantial gap between the IMF and the ESM growth assumptions embedded in their respective debt assessments.
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