Greece crisis 'not over'

A deal between Greece and the rest of the eurozone to secure a second massive bailout for the debt-laden country was finally delivered today – but analysts warned the “crisis marathon is not over”.

In return for the latest €130bn bail-out, Greece pledged to implement public sector pay, pension and jobs cuts, as well as finding savings of €325m in this year’s national budget.

But the deal is based on long-range forecasts of Greek’s best-case scenario for slashing its debts over the next eight years and was dismissed by some as undeliverable.

Carsten Brzeski, analyst at ING Bank, said: “It looks like a deal, it walks like a deal, it is almost a deal. Last night’s eurogroup meeting has paved the way for a second Greek bailout but the crisis marathon is not over.”

The FTSE 100 Index has rallied in the last few weeks to a six-month high above the 5900 mark on hopes agreement would be reached as the deal means Greece will not default on its huge debts.

However, the move was largely expected by traders and London’s leading shares index dipped six points today to 5938.7.

Michael Hewson, senior market analyst at trader CMC Markets, said the “can has just been kicked a little further”.

He said: “Churchill said ’Now this is not the end. It is not even the beginning of the end, but it is, perhaps, the end of the beginning’. Greece has still got some way to go.”