Investment

The Greek debt crisis has worsened

This week, after all, it will be decisive for the development of the Greek debt crisis. Investors can look forward to significant wave flows in the financial markets in step with changing political messages. Property management follows the situation very closely.

Friday, June 26, it appeared that there would be an agreement that would temporarily resolve the Greek debt crisis, but the negotiations collapsed. The Greek Parliament adopted on Sunday that a referendum on creditors’ (ECB, IMF and EU countries) negotiating talks should be held on Sunday, 5 July. However, this proposal is time-limited until Tuesday 30 June. Therefore, for good reasons, this cannot be voted on Sunday, and this makes it uncertain at the time of the referendum what the referendum really should be about. However, new proposals must be expected from both sides during the week.

Payments are due
But there is currently no extension of the aid packages that expire on June 30 – the same day as a payment of 1.5 billion is due to the IMF. It does not seem likely that Greece can pay, and it is almost unthinkable that the country can pay the 3.5 billion that fall due later in July. The Greek banks are closed all this week. The ECB has failed to increase its ELA program, which provides the banks with the liquidity needed for them to function. Without an increase in ELA, the natural consequence is that banks must keep closed.

Continued political game
Politically, much can happen during this week. Fortune management expects, after all, a political will to bring the country a solution to the finish line, for both the EU and the euro’s credibility is at stake. But there is very much uncertainty about the outcome. The domestic security of the Greeks is also at stake in relation to the risk of an economic collapse, social unrest, and tourist flight. But the Greeks may have to accept just some of the demands being made, otherwise, it will have a negative impact on those countries in the EU who have also had a hard time but who have taken the pain medicine.

Uncertainty
The situation has already given rise to uncertainty in the financial markets with falling stock prices and falling short-term interest rates in the secure northern European countries. But in the slightly longer perspective, Formuepleje does not expect it to develop into a financial crisis to the same extent as in 2008. Greece, after all, is a small economy, the euro countries and the ECB have prepared for this possible scenario since 2011, and the ECB will Tackle massively and shoot with all the guns they have to protect the European economy. But we expect falling stock prices, a weaker euro and low interest rates in the core countries – including in Denmark – in the coming days.

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