EUROZONE-GREECE/FRANCE-MARKETS Greek bailout deal good news for European markets, says French analyst

Record ID: 147288

  • Title: EUROZONE-GREECE/FRANCE-MARKETS Greek bailout deal good news for European markets, says French analyst
  • Date: 13th July 2015
  • Summary: PARIS, FRANCE (JULY 13, 2015) (REUTERS) VARIOUS OF MONSEGUR FINANCE ANALYST ALEXANDRE ZILLIOX WORKING IN OFFICE TV SCREEN SHOWING NEWS ABOUT GREECE DEAL COMPUTER SCREEN SHOWING MARKET TREND EDGE OF COMPUTER SCREEN, READING (English): "GREECE" (SOUNDBITE) (French) MONSEGUR FINANCE ANALYST, ALEXANDRE ZILLIOX, SAYING: "It is good news, there are still some uncertainties, but
  • Embargoed: 28th July 2015 13:00
  • Keywords:
  • Location: France
  • Country: France
  • Topics: General
  • Reuters ID: LVADD5WDINC4QM89G1V48EL3R7KM
  • Aspect Ratio: 16:9
  • Story Text: The Greek bailout deal announced Monday (July 13) is good news for European markets, although many uncertainties remain, a French financial analyst said.
    The Paris stock market opened higher Monday, following news that Greece and its international EU-IMF creditors had reached a unanimous bailout agreement after all-night talks in Brussels and months of negotiations.
    European stock markets responded positively to the deal, with stock markets in France trading more than 2 percent higher, good news according to Monsegur analyst Alexandre Zilliox.
    "It is good news, there are still some uncertainties, but it is indeed good news because we had doubts about Greece's situation, whether it was going to exit or stay in the European Union, now we are going in the right direction for Greece to stay. Therefore we will have less instability on the markets. So it's good news, even though there are still some uncertainties," Zilliox said.
    Greece's third bailout was agreed by European powers after nearly 17 hours of negotiations, but Athens must enact key reforms this week before they will start talks on a financial rescue to keep it in the European currency area.
    The impact of the deal on markets depends indeed on whether the Greek government successfully implements the reforms, Zilliox said.
    "Whether this will attract growth, whether the country's revenues will rise thanks to reforms on VAT and retirements, it will really depend on Greek government's capacity to implement these measures. If the economic growth restarts, even slowly, this will allow the debt to be more sustainable for Greece. So the story is not over. It will depend indeed on the impact reforms will have on Greek economy," he said.
    Finance ministers said Greece needed 7 billion euros of funding by July 20, when it must make a crucial bond redemption to the ECB, and a total of 12 billion euros by mid-August when another ECB payment falls due.
    The ECB was expected to maintain emergency funding for Greek banks to keep them just afloat this week but no large increase was likely and the banks would need a major recapitalisation before they could reopen, central bank sources said.
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