Forex Flash: Troika arrives in Portugal today - BTMU

FXstreet.com (Barcelona) - Lee Hardman, FX analysts at the Bank of Tokyo Mitsubishi UFJ notes that Troika officials will arrive in Portugal today to assess a new round of austerity measures required to secure the next EUR 2bln tranche of financial support and to win final approval of an agreement to extend outstanding maturities by seven more years.

He writes, “The Portuguese government will present plans to replace EUR1.3 billion of planned budget cuts which were rejected recently by their Constitutional Court as well as a further EUR4.0 billion in medium-term cuts. At an informal meeting of EU finance ministers over the weekend, German finance minister Schauble stressed that it would require a revision of EU treaties to create a single bank resolution authority playing down more optimistic expectations that a full banking union framework could be agreed in the coming twelve months. The euro remains relatively stable.”