TROUBLES in larger Eurozone economies are not entirely deflecting attention away from Greece, analysts said yesterday.
“Greece is far behind schedule on the [deficit reduction] targets set by the IMF and this is not due to downward growth revision, but mainly to government’s deficient implementation,” UBS commented in a note.
“This is likely to raise concern that the IMF will refuse to provide the next [bailout] payment … We think the payment will be made, although it is likely to be delayed.”
A Greek government spokesperson said that they are expecting the €8bn (£7bn) tranche of EU and IMF aid this month, as scheduled.
Daiwa economist Grant Lewis yesterday also raised questions concerning the European Central Bank’s debt-purchasing programme and whether Greece will default.
“You have to be worrying about your capital if you are the ECB. You hold €45bn of Greek debt and Greece is a car crash in slow motion” he said.
“Most people now think is it sliding to a proper default ... the ECB must be getting pretty giddy.”
Yields on Greek two-year debt soared past the 50 per cent mark yesterday.