Greece Bailout Tranche To Be Released On December 13…

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Greece Bailout Tranche will be released on December 13 in the amount of €34.4B.

(GR) EU’s Juncker: Formally announces Eurogroup had reached deal on Greece aid disbursement

  • Reiterates view that Greece government had demonstrated firm commitment to program.
  • Greece bilateral loan rates to be lowered by 100bps.
  • Euro zone agrees to defer interest payments on EFSF loans to Greece by 10 years
  • Extend maturities on all Greek loans by 15 years
  • Central banks to forgo bond profits on Greek bonds
  • Package includes central bank profits on Greek bonds paid into a separate Greek account
  • Also to include a  debt buy back
  • Eurogroup reached political agreement for Greek disbursement
  • Greece aid disbursement to take place in 3 tranches
    • Greece to receive €34.4B for bank recapitalization in Dec; with formal decision on disbursement Dec 13th.
    • Remainder of funds to be released in Q1 of 2013 linked to implementation
  • Greek debt to hit 124% GDP in 2020 and decline to 110% of GDP in 2022

Eurogroup is committed to provide support to Greece until the country regains market access- Will consider further measures once Greece runs a primary surplus

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How to interpret this information?

Obviously this news is positive for the Euro, but considering how much the market gained ahead of this release, it is understandable to see some profit taking after the news.  With the uncertainty settled for Greece, I believe Euro may now gain on positive sentiment and it could potentially restest the upper end of the range.

With Spain to receive its Banking Bailout payments in December, there are very little “European” concerns for the market until 2013.  We may see EURUSD starts to regain its marketshare as sentiment improves for Europe while US Feds continue with QE3.  Although we may need another news catalyst for EURUSD to make an upward breakout, I believe we should at least see the 1.3170 level being retested in the coming weeks, if not coming days.  The key is to buy EUR on dips, against USD or JPY.

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About Henry Liu

My name is Henry Liu and I am a Forex Trader and Mentor. I help traders achieve consistent income trading Forex while spending less time trading. My focus in trading is a combination of Fundamental Analysis, Technical Analysis, and Market Sentiment. Far too many retail Forex traders concentrate on just one aspect of trading, technical analysis, and ignore everything else; it is my goal (and vision) to educate every trader on how to take advantage of news trading and become more balanced traders.

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