Germany won’t blink first in Greek negotiation

German finance minister Wolfgag Schäuble made clear last night that he won't be blinking first in the current ongoing negotiations with Greece over release of bailout funds.

Greek tactics -

• Greek government first time in decade has put a number on Greek reparation claims from Germany over Nazi occupation of Greece in 1940s and the sum stands around € 279 billion, larger than Greek bailout package of € 242 billion.
  
  
• Greek finance minister Yanis Varoufakis and Prime Minister Alexis Tsiparas has been touring world in search of support. They met with US officials to help them broker a deal with European creditors. Mr. Tsiparas also visited Moscow to gather support from Russian president Vladimir Putin. Exact extent of talks remain unclear, though Russia has offered Greece to join pipeline structure that will provide Russian gas to Europe via Turkey.

• Greek government threatened to use its veto power over Russian sanctions, which is set to expire this year and requires support of all 28 members for renewal.

• Senior Greek officials have floated the default idea once again, though later it was dis missed. Suggestion was a possible default over next tranche of IMF loans, should the Euro group finance ministers fail to strike a deal on April 24^th meeting at Riga.

German officials have so far shrugged off the all these ideas and Mr. Schäuble last night cleared that no deal is expected at the meeting in Riga.

Next Euro group finance ministers' meet is scheduled on May 11^th just a day before IMF payment date of € 0.78 billion.

Euro has so far remained complacent over Greece and for now focus on yield differential arising from falling yields across Europe.

Meanwhile Greek 2 year yield has reached beyond 26%, highest since July last year.