The Greek Crisis – What’s Next?
If you have been listening to the news lately, you have been bombarded with the endless talk of Greece and where its financial future is heading. The Greek Prime Minister just last week encouraged the Greek people to vote no to the July 5 referendum which resulted in a 60% voters’ opposition. This week the same Prime Minister has made a 180 degree turn on the issue and is requesting his party to sign off on authorization from the parliament to negotiate with the creditors. Greece is asking for a three year financial program that is worth more than $60 billion, to include some sort of debt relief. This weekend creditors will meet to see if they agree on an approval of the plan. Greece government officials seem confident the plan will be accepted by the creditors.
In addition, the proposals are to be discussed by Eurozone finance ministers on Saturday. On Sunday, a summit of the European Union’s 28 leaders will be conducted.
Meanwhile, Greek banks remain closed but confident they would be restored to operation, at least on a gradual basis.
Our markets have been somewhat volatile this week with this news. The vote in Greece was a major event, but it is not completely a hugely devastating one. There is a possibility these events surrounding Greece could go on for a number of weeks which could create even more volatility in our markets. But there are certain protective measures that have been put in place to limit the impact of Greece’s financial troubles. Be assured we are looking at the long-term viewpoint and are avoiding being tossed about by short-term events.