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The Greek tragedy continues

Published Thursday, February 12th, 2015

Sentiment was once again at the mercy of the Greek debt debacle as investors waited with bated breath ahead of a crunch meeting between representatives from the beleaguered periphery member and its eurozone creditors. Hopes that a compromise was in the making were dashed after talks ended in a stalemate with both parties finding little common ground. The lack of progress in renegotiating the terms of Greece’s existing bailout, which ends at the end of this month, makes a deal before its expiry highly unlikely and leaves its banking sector facing the very real threat of a liquidity crisis. Although talks are set to resume on Monday, the failure of both sides to even agree on the release of a joint statement shows just how far they are from reconciling their differences.

Efforts aimed at finding a diplomatic solution to the conflict in eastern Ukraine proved to be more fruitful. This came despite an uptick in tension following comments from the head of the US military in Europe claiming direct Russian involvement in the crisis. Leaders from Germany, France, Russia and Ukraine held constructive talks and reports that a ceasefire agreement could be signed as early at the 14 February bolstered hopes of a long-term peace plan. The prospects for Ukraine’s economy also took a step in the right direction after it announced it was close to agreeing an emergency bailout from the IMF that would save it from bankruptcy. The decline in geopolitical tensions is in turn helping the oil complex rebound with prices recovering from most of yesterday’s loses.

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Posted by Stephen Brennock

Stephen Brennock joined PVM in 2013 after having worked as a project manager for a business development firm. He graduated with a degree in Business Management in 2007.