Greece Likely To Meet Its ECB Payment

European markets face three principal risks over the coming week. One is whether Greece makes its €3.5 billion payment to the ECB on Monday. Two is further colour on the rate hike debate at the Bank of England when meeting minutes will be released on Wednesday. Three is the release of the latest crop of purchasing manager indices on Friday.

ECB President Mario Draghi has noted that he expects Greece to make its payment on Monday following his move to raise the Emergency Lending Agreement (ELA) amount to Greece's central bank. Funds for making the ECB payment would be aided by an expected €7 billion bridge loan to Greece. The Irish Prime Minister spilled the beans this past Thursday when he noted that euro-area finance ministers have agreed on the bridge loan and it will be formally announced after successful votes on the Greek aid package in European parliaments.