Rehn made it clear that the bailout funds will not be released until Greece’s full parliament passes reforms. Bondholders also will not sign off on a PSI deal until the bailout funds come through.
These things will happen in this order:
- Greek Parliament passes austerity legislation
- Troika approves second bailout
- PSI deal completed
The Parliamentary vote is expected on Sunday and the bond swap is supposed to start Monday. All the deals appear to be in place, so it’s possible but there is not much room for error. Expect a very skittish market late Friday, Sunday and Monday.
