Greece debate dominated IMF meeting

IMF held its meeting over the weekend to discuss on variety of agenda's like Greece situation, Path for Ukraine, Chine Yuan's inclusion in reserve currency basket etc. According to an unnamed official, Greece's current situation dominated the discussion.

• According to latest Greece has unofficially floated the idea of defaulting on IMF loans due in May should the negotiators failed to reach agreement on 24th meeting. Berlin shrugged off any possibility of a deal on that date and maintains view that no money without reforms.

IMF chief Christina Lagarde also launched sharp rebuke against the current Syriza party led government over the weekend, in an interview with Financial Times.

• Greece need s to set aside politics and focus on reforms that would deliver expected growth and stability back. The current government need to accelerate reforms.
   
• She also warned that patience with Syriza party is coming to an end.

Greece default on IMF loan would bring situation and economy to uncharted waters.

• According to latest from European Central Bank's (ECB) president Mario Draghi, ECB has tools to manage should such a crisis occur, however no one knows what might happen should Greece choose to default or exit Euro.
   
• US treasury secretary Jack Lew has warned against the adverse that might arise from failed negotiation.

Market expectation over the Riga meeting on 24th for a deal has now diminished, however any deterioration will push yield on Greek bonds higher while Euro takes cues from yield differential.