Market information Tuesday June 30th 2015

Greece is not going to repay its loans of almost EUR 1.6 billion today. The Greeks have until tonight to pay off the IMF loan. The country did not succeed to conclude an agreement with the lenders in recent days. The loans must be repaid today at midnight Washington time, that is Wednesday 06:00 Dutch time. The IMF has already indicated that there will not be an extension of the deadline or a postponement period. If the loans are not repaid on time, the IMF will formally categorize Greece as a defaulter.

Because of the escalating crisis in Greece, billions are at stake for the Dutch industry. Last year the Greeks imported approximately EUR 2.3 billion of goods from the Netherlands, the food industry expects the biggest losses. This sector has exported some EUR 760 million to the Southern European country, particularly meat and dairy products. The chemistry follows with exports of EUR 517 million in 2014.

Rating agency Standard & Poor’s (S&P) has once again lowered the credit rating of Greece. The rating went from CCC to CCC-, with a negative outlook. According to S&P, it is inevitable that Greece will default on its financial obligations within six months, unless unexpected favorable changes in the situation occur.

The 6M Euribor remained unchanged at 0.05%. The 10Y Swap decreased with 4 bp to 1.14%.

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