Hours before Friday's make-or-break Eurogroup meeting, Greek Prime Minister Alexis Tsipras said that he was "certain" Athens' request for a six-month loan extension would be accepted despite objections from Berlin.
"This is the moment for a historic political decision for the future of Europe," Tsipras said in a written statement to the Reuters news agency. "Greece has done everything possible so that we can arrive at a mutually beneficial solution."
As news of the prime minister's confidence spread, the German blue-chip DAX stock index jumped 0.7 percent to a new high of 11,081.81 points and the euro fell to $1.13. Traders said the markets were very sensitive to any new developments in Greece's negotiations with its creditors.
Menwhile, there were spreading news that the European Central Bank was preparing contingency plans in case Greece ultimately has to leave the eurozone.
A spokesman for the central bank refused to comment though, says Deutsche Welle. He also categorically denied other information from Der Spiegel stating that the ECB had been pressuring Greek banks to introduce capital controls to protect their liquidity as depositors withdraw massive amounts of money from their accounts.
