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Greek 'crunch time' closer - BofA

FXStreet (Bali) - Gilles Moec and Ruben Segura-Cayuela, European Economists at Bank of America Merril Lynch, note that mid-May may well be "crunch time" for any Greek resolution.

Key Quotes

"The general tone on the Greek issue at the IMF springtime meetings in Washington was sombre. Mario Draghi, even if he highlighted the enhanced capacity of the Euro area to deal with any Greek "accident", expressed his concerns over the issue, referring to "unchartered waters"."

"The chairman of the Eurogroup Jeroen Dijsselbloem - backed by the European Commission through the voice of Pierre Moscovici - made it plain on 17 April that he no longer expected any deal at the meeting in Riga on 24 April, as we have argued before, and now expressed some mild hope in an agreement at the next Eurogroup gathering on 11 May ("it would be very welcome if they [the Greek government ] could present a more final outcome by then")."

"Since the meeting coincides almost exactly with another significant payment to the IMF (EUR760mn), mid-May may well be "crunch time" for any Greek resolution."

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