Greek parliament approves austerity, but bailout still in question

13 February, 2012


The Greek parliament yesterday voted through the austerity measures needed for the bailout package which should keep Greece in the Euro, but riots and unrest mean the deal is still in doubt.

Riots and looting on the streets of Athens show that the government will not have an easy time implementing the measures, which the EU and IMF are demanding assurances on before handing over bailout funds. Greece needs €14.5bn by March 20th to avoid a default on its debt payments.

The Euro is likely to strengthen once the bailout is finally agreed, giving lower exchange rates for sending Euro payments. EU finance ministers meet on Wednesday and will be looking for assurances from Greece. Despite yesterday’s vote, the Euro has only strenghtened slightly this morning, as markets await the next developments. Euro exchange rates could fall once there is a consensus that the bailout is definitely going to happen, but don’t forget at Currency Index we can offer a guaranteed Euro rate up to 2 years in advance to take advantage of the current favourable rates.