ECONOMY

Greece, creditors likely to wrap up deal this week, poll finds

greece-creditors-likely-to-wrap-up-deal-this-week-poll-finds

Greece and its creditors are likely to reach agreement this week on a new multi-billion-euro bailout, a Reuters poll of euro money market traders found.

Greece hopes to conclude weeks of negotiations with its creditors by early Tuesday. Officials say they expect to send the accord to the country's parliament for approval by Aug. 18.

Traders polled by Reuters on Monday were optimistic a deal for up to 86 billion euros in fresh loans would be agreed this week – 12 of 19 said it was likely and five very likely. Just two said it was unlikely and none said very unlikely.

“They (Greece) obviously seem to be willing to get some sort of deal on the books,” one trader said. <<Who knows what the consequences otherwise would be?

“I still think that at some stage down the line it's going to go belly-up, but for the time being they'll be prepared to accept almost anything in order to get hold of their 86 yards (billion euros).”

Greece has a repayment due to the European Central Bank on Aug. 20. The bailout must be in place by then or it runs the risk of defaulting on its debt.

The poll also showed banks will borrow 70.0 billion euros from the ECB this week, compared with 71.007 billion euros was taken last week.

[Reuters]