Rather than meditating on the past weeks theatrics on the forex stage, it seems far more worthwhile to focus on the Euro-Zone in this week’s chapter of our currency exchange diary. An unexpected and sizeable aid package arrived on Greece’s front door and, although it hasn’t yet been signed for, the European currency is already benefiting from investors’ relief. So here are the gritty details: Over the weekend, bespectacled Finnish Eurogroup Junker and European Commissioner Olli Rehn presented the media with details of the financial backstop facility for Greece. As anticipated, the rescue plan will come in the form of bilateral loans from the Euro area member states, in what promises to be an effective economical makeover for the Greek nation. Amounts will be tailored to fit Greece's funding needs over the next three years and The European Commission will act as a conduit and deal with the bilateral negotiations, while the European Central Bank will be the paying agent supplying the dough. A larger-than-expected 30 billion euros will be the maximum amount of pocket money provided by the Euro area for the first year and each country will contribute according to the ECB capital key. Amounts for later years are yet to be evaluated, but it is reported that there is no upper limit to the commitment. Additional financing from the International Monetary Fund is expected to be formalised today, although Rehn confirmed that analysts’ assumption of a ‘two thirds’ contribution from the Euro area against ‘one third’ for the IMF is a good guess. If and when Greece requests a loan, the European Commission and ECB will cast their beady eyes over the situation, make an assessment and submit it to the hopefully unanimous approval of the Euro area countries. It was specified in the press conference that cash would be promptly laid out, which conflicts with the fact that other countries need such decisions to be ratified by their parliament. This raises a few questions over the idea of ‘imminent disbursements’. Developments in the next few days and the ability of Greece to access the market will determine if help is needed sooner than expected. The next date to watch following this gripping omnibus is the update of the Stability and Growth Plan next month. As there have been no additions to conditionality we can only assume that EU leaders feel Greece have made positive steps towards dealing with their problems. Of course, this has been a blinding green light for Euro investors in the currency exchange world, easing concerns about the inability of the EU to solve Greece's financing needs. However, it sets a hazardous precedent as the Euro area can ill-afford another similar situation. Pressure on other periphery countries to strengthen financially and for the ECB to maintain a sturdy policy will have increased and the intricacy of this deal and the IMF's participation will keep investors in heavy debate. While it’s clear that Europe want to help Greece, it’s possible that the forex market will only respond solidly when aid is actually disbursed to the country. In the meantime, keep an eye on any news relating to the situation and if you want to make a currency payment or swift transfer at the best exchange rate, call us now on +44 (0)207 740 0000