Greece secures bailout extension, more negotiation ahead

Greek government and the Euro zone creditors have secured a deal of bailout extension of 4 months in late Friday.

Important takeaways-

• Greek government will get the rest € 7.2 billion aid package, the final tranche of current bailout programme if the deal is successful.

• To secure the bailout extension the Greek government will be required to come up with a series of reform and budget cuts to TROIKA (ECB, IMF, European Commission) today, 23^rd February.

• Tomorrow, 24^th February European finance ministers will reconvene to finalize the deal.

• A success deal would keep the Greek government, especially the banks afloat in the midst of a heavy deposit withdrawal of approximately € 2 billion/week.

• Despite the scheduled time frame, a negotiation could extend beyond Tuesday as the bailout officially does not expire till February 28^th.

The Euro has taken the news with pinch of salt, currently trading around 1.135 against the Dollar. The pair is still treading water within its tight range of 1.127-1.145. Depending on the outcome the pair could move into its larger range of 1.11-1.165.