Greece – Agreement remains elusive

Greece and its official creditors remain far from an agreement on the reform package that will unlock the final tranche of bailout loans. At the time of writing, discussions have been escalated to top officials. A political deal may be reached before the 5 June IMF payment of c.EUR 300mn but a staff-level deal will likely take longer. 

The government will most likely make the payment due on 5 June; however, even if it is missed, it is unlikely to trigger a negative feedback loop immediately, expects Standard Chartered. The end of June remains the 'real' deadline for an agreement, when the current bailout deal is scheduled to end; and EUR 6.7bn is due to the European Central Bank in July and August, which the Greek government is very unlikely to be able to meet.