11th hour negotiations continue in Greece

Negotiations continued over the weekend between Greek officials and Euro zone inspectors known as Brussels Group that comprises of ECB, IMF, European council and ESM. Talks lasted several hours and on Saturday for consecutive 10 hours at one stretch.

Latest information suggest positive improvement over some aspects, however a lot remain yet to be covered.

Key highlights -

• Greece has so far given up on two of demands of creditors - increasing VAT on Greek Islands and to retain property taxes that has been very unpopular among public. These measures are expected to increase revenue by € 2.5-3 billion.

• However, significant gap still remains over labor laws and pension reforms.

• Brussels group officials still thinks the latest list provided by Greek government is still too vague and lack further specification on how the measures would be achieved.

Greek Prime Minister Alexis Tsiparas has called the lawmakers on a special meeting at 8pm Athens time today, where he will be briefing about latest weekend negotiation and stance of his government.

• Greek is not very far from running out of money, probably by 8^th April and before the payment of € 0.45 billion to IMF on 9^th. Greece can avail the remaining € 7.2 billion from current bailout fund upon successful agreement over reforms. Government has taken today as a deadline to finalize the deal, however negotiation might get extended.

Euro is currently trading 1.085 and might receive a boost from successful deal which seems to be underway but might take some more time.