Papademos promises debt deal will be done in time

16 January, 2012


Greek Prime Minister Lucas Papademos has promised a debt swap would be clinched in time (Greece needs a deal with the private sector, EU and IMF by late March to avoid default) and dispatched senior officials to Washington on Monday to break a deadlock in talks that has prompted new fears of a disorderly default. The swap deal is crucial to the second Greek bailout and therefore also crucial to the Euro, both in terms of short term exchange rates, and long term stability. Senior inspectors are due in Athens next week for talks to finalise the second, €130 billion bailout which was agreed in October. The debt swap should be watched carefully by buyers of all major currencies, since the Euro is very sensitive to any positive or negative sentiment on the issue, with knock on effects likely to be felt in most currencies around the world. For your own transaction, Currency Index are on hand to discuss how the upcoming developments might affect rates. Simply call us for an informal chat and of course some of the best rates currently available for transfers to or from any other currency.