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Markets have celebrated news of a third bailout for Greece. But according to Saxo Bank’s Michael Boye, risks remain as the Greek Parliament needs to endorse new austerity measures in return for a new bailout of up to 86 billion euro. The IMF has cast fresh doubt on the Greek government's ability to recover with a damning assessment of the amount of debt relief that Greece actually needs set against what the Eurozone countries are currently calculating.

 

The Greek government must pass a raft of measures through Parliament by Wednesday night, including consumer tax increases and pension reforms, to start negotiations with it's international creditors on the bailout. The deal also needs to be approved by the German Bundestag and other parliaments. 

This leaves Greece in need of bridge financing to avoid defaulting on payments to the ECB this month or risk a default. 

Finally, the deal hinges on Greece actually implementing the terms of the bailout, which according to Boye is the biggest risk of them all.