Greece Groundhog Day All Over Again: Strategist




Greece’s leaders and representatives of the “troika” responsible for its bailout failed yet again to reach agreement on the terms of a second bailout by Tuesday morning leaving European markets facing another day’s uncertainty over the Mediterranean country.

Elena Panaritis, MP for Pasok, the party of former Prime Minister George Papandreou, told CNBC that she believes they will reach agreement on Tuesday.

It’s like Groundhog Day over and over again,” said Geoffrey Yu, currency strategist at UBS, making a comparison to the film in which Bill Murray find himself trapped in a repeating time loop.

“The FX market has been disappointed so much by what’s going on. It feels rational for governments and corporates to start looking at the implications of a Greek exit,” Yu told CNBC.

When negotiations over new austerity measures in Greece as part of its second bailout started in earnest this year, the deadline of March 20 for repayment of a 14.5 billion euro ($19 billion) bond by the heavily indebted country seemed a long time away. As they drag into February, markets are increasingly restive.

The troika of officials from the European Union, International Monetary Fundand the European Central Bank are trying to reach agreement with the recently formed Greek government, under technocrat Lucas Papademos.