A funding agreement between Greece and its European creditors is not a done deal, says said Jennifer McKeown, senior European economist at Capital Economics. Greece has already announced that it will delay sending a list of reforms to the Eurogroup until Tuesday as dissention rising within the political party. “It is clear that Greece has made huge concessions, which its Parliament might not endorse. And even if it does, there is still the major hurdle of long-term debt restructuring to overcome in the not too distant future,” she says. “Even assuming that the deal holds, it is unclear how the Government will meet its financial obligations (chiefly to the IMF) between now and the end of April when its next bailout installment might finally be paid.” Capital Economics has been bullish on gold prices as they think the market has significantly underpriced the risk of Greece defaulting on its loans and being forced to exit the euro.
