Habour Asset Management talks about the latest announcement made by Greece over the weekend.
The Greek Government shocked the markets over the weekend by announcing that it will hold a referendum on 5th July, asking the Greek people whether they agree with the latest bailout conditions imposed by European negotiators.The ECB has announced that it will not
extend emergency funding to Greek banks. Capital controls have been imposed to stem the runs on Greek banks that began over the weekend
The situation is very fluid and uncertain. It is unclear exactly what the Greek people will be voting on, as the latest bailout conditions become invalid if Greece misses the repayments due on Tuesday 30 June. Furthermore, it is unclear what would happen after a “no” vote –that is,
what mandate this provides the Greek Government, and how much leverage this will really provide.Opinion polls shed little light on the direction of any vote.
We expect the situation to remain volatile in coming weeks, and are monitoring 3 areas
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