Tentative Greece Agreement Dowses Exit Fears

Discussions on extending the maturities of Greece's debt or providing longer grace periods on payments would begin once a first review of the programme has been approved, likely to be later this year.  However, all indication from the Euro Summit is that debt-forgiveness will not be part of these discussions.
 At the end of a round of drawn-out weekend negotiations, a tentative agreement on a new bailout deal of €82-86bn for Greece was reached with euro area partners. Bridge financing is expected to be provided to cover Greece's near-term debt funding needs, with additional funds set aside for bank recapitalization. 
With the framework hammered out, the near-term risks now lie in implementation. For the new bailout deal to move forward, the Greek parliament must first ratify a number of measures, including VAT and pension reforms, by this Wednesday. The deal must also be approved by euro area national parliaments, which is likely to happen towards the end of this week.

Chancellor Merkel's endorsement should see it passed in the Bundestag. While there will almost assuredly be dissent within Syriza's ranks, the agreement should also pass Greece's parliament with the help of the mainstream opposition parties.  
Many details remain relatively obscure. It appears that some funds will be earmarked towards raising investment in Greece to help the ailing economy. However, the deal is largely seen as Greece giving in to creditor's demands, says Economics TD.

The current deal also appears to have more stringent oversight than that struck before the referendum. Moreover, IMF involvement is also slated to continue for at least the duration of the program.

Source : FX-Primus

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