Euro High Ahead of Finance Ministers' Meeting
The euro hit a six week high on Monday, trading at 1.3027. The common currency has been in for a bumpy ride over the past few weeks, but after three long meetings in as many weeks, a plan for Greece's rescue fund has been agreed upon and set in motion.
After disagreeing with International Monetary Fund Director Christine Lagarde over writing off some of Greece's debt, German Finance Minister Wolfgang Schauble brought the plan to his country's parliament on Friday where it was met with question. However, the plan passed by a wide margin, reassuring investors of the country's commitment to keep the eurozone together.
On Monday, the finance ministers will meet again for their monthly meeting. The meeting is expected to focus on a presentation by Greek Finance Minister Yannis Stournaras about how Greece expects to conduct a bond buyback. The country is expected to buy Greek bonds using borrowed money in order to receive a large percentage of its bailout money from the IMF.
The buyback has been very controversial among opponents of the revised debt relief package, as there are many questions about how much debt needs to be retired in order to be considered a success.
Greece will not be the only topic of discussion though, according to the New York Times, the finance ministers will also be discussing the recapitalization of Cyprus' banks. Plans to recapitalize could move forward within the next few weeks, making Cyprus the fourth eurozone country to be bailed out.
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