"The debt swap agreement is ready, but it will not be announced before the end of the week"
- A senior Greek banker
The leaders of 25 European Union member countries Monday signed a German-inspired pact for stricter budget discipline which will impose sanctions on countries that run excessive deficits and rack up unsustainable debts.
"It is the first step toward a fiscal union. It certainly will strengthen confidence in the euro area," the European Central Bank President Mario Draghi said. The fiscal pact is a "small but fine step on the path to restoring confidence," said Merkel.
A senior Greek banker said a debt swap deal is largely in place but before it will be announced Greek officials must show they are serious about tackling reforms.
"The debt swap agreement is ready, but it will not be announced before the end of the week and until the government has made certain commitments on reforms, labour issues and the pension system," said the banker on condition of anonymity.
© Dukascopy Bank