Forex Flash: Refinancing ahead for Portugal? – Deutsche Bank

FXstreet.com (Barcelona) - In Europe and ahead of this week's Eurogroup/ECOFIN meetings, Reuters is reporting that EU policymakers are considering approving an extension to the Irish and Portuguese programs. According to Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank, “The extension will see the average maturity of EU loans by increased by seven years, which will smooth the two countries' debt refinancing profiles well into the 2020s. Shorter maturity extensions of between 2-5 years were judged to be not beneficial enough for the country.” Later this week, a draft discussion document prepared by the troika will be presented to finance ministers at this week's Eurogroup/ECOFIN.

In Italy, Bersani met with Berlusconi to discuss the election for the next President of Italy. The deputy leader of Bersani's Democratic Party Enrico Letta said the meeting had focused only on the issue of the next president, not on any possible deal to form a government. Letta added there would be further meetings in the next few days with Berlusconi's People of Freedom (PDL) and other parties but said no names were discussed at Tuesday's meeting, intended to prepare the way for the start of the presidential election process on April 18th. President Napolitano's term ends in May 15th.