Trading in Greek sovereign bonds turned extremely volatile on Thursday as a nervous market fretted ahead of an agreement between Athens and Brussels on its debt bailout programme.
A big IMF payment deadline falls next week, but a deal needs to be struck with creditors before then, or the 450 million euro payment may blow an unpluggable hole in Greece's finances.
"There is no doubt that the ongoing negotiations have vague ingredients and are creating insecurity in the markets. This creates problems with liquidity, and consequently has a negative impact. But we are negotiating for the future of Greece at this moment, just like some negotiated, or rather did not negotiate, in 2010 and 2012," said Finance Minister Yanis Varoufakis.
Athens newspapers have already published the list of economic reforms presented to creditors on Wednesday, highlighting the ones that do not convince Brussels.
Greece needs its creditors to believe in the reforms so that the flow of bailout loans will continue. If they do not and the funds dry up, Greece could default on its loans. On Thursday Athens told its creditors it will run out of cash on April 9.
Source: Euro News
