ATHENS, April 23 (Reuters) - Greek Prime Minister George Papandreou asked for the activation of a euro zone and International Monetary Fund aid package on Friday aimed at pulling the country out of a debt crisis.
Here are analysts' comments following his request:
SEAN MALONEY, RATE STRATEGIST, NOMURA
"I don't necessarily think we're out of the woods here because there's a fair bit of wrangling to go in terms of how much the package is going to be, and the terms that are going to be attached to it. I think the reaction we've seen so far is understandable but whether it extends another significant amount from here is another question."
ALINE SCHUILING, ECONOMIST AT FORTIS BANK
"It's a good move because there was so much uncertainty. It was becoming obvious that Greece would need the mechanism, that it could not cope on its own. The risk of default now drops dramatically so it makes sense that spreads are coming in and CDS are down. We will have to see the conditionality attached to the loans but we think that parliaments will approve the funding."
JANE FOLEY, RESEARCH DIRECTOR, FOREX.COM
"This is not a good outcome for Greece or for the EMU. It has, however, become inevitable since Greece can no longer afford to fund its debt at current market rates. Looking ahead, the acknowledgement by Greece that it needs aid will not be the end of the story. The only way that Greece is going to get back on its feet is to start living within its means."
PHILIPPE GIJSELS, HEAD OF RESEARCH AT BNP PARIBAS FORTIS GLOBAL MARKETS, BRUSSELS
"It does not come as a surprise. Even if there is a short term solution there is still uncertainty. It still has to go through national parliament and we do not know what the reaction of Germany will be. Does this mean it stops here or will it spread to Portugal and Spain. I think it will still weigh on markets and it is not a done deal."
DARAGH MAHER, DEPUTY HEAD OF FX STRATEGY, CREDIT AGRICOLE CIB
"It's a positive development in the short term. The comments coming out of Germany suggest they won't be stonewalling Greece's request.
"In the longer-term, it's just a sticking plaster over the situation. The question remains how can Greece extract itself from its problems, and the situation remains highly uncertain.
"The euro has not seen a sizeable bounce. It shows investors remain uncomfortable with being bullish on the euro."
GERHARD SCHWARZ, HEAD OF GLOBAL EQUITY STRATEGY, UNICREDIT
"It (the aid package) is something that might help market sentiment in the short term because it could alleviate the fears that have arisen regarding a possible debt restructuring for Greece that was discussed in the markets lately. But at the end of the day it is nothing that will solve the fundamental problems of the Greek government."
PETER CHATWELL, STRATEGIST, CREDIT AGRICOLE CIB
"We aren't really much further into solving the problem - we need to know how much Greece will get and when, so uncertainty will continue to be a problem, hence no major reaction since the formal announcement."
BEN MAY, EUROPEAN ECONOMIST, CAPITAL ECONOMICS
"It is certainly no surprise; we have been feeling for a little bit now that it was inevitable that they were going to ask for it sooner rather than later. With the pressure on the markets in the last few days it really was inevitable.
"The yields have fallen back a bit but they are still incredibly high, which perhaps suggests that there are still doubts about whether the aid can be delivered fast enough. But I think there are probably ways around that ... I am sure the money will come to Greece sooner rather than later.
"But the bigger picture is still that there are huge issues in the medium term in terms of Greece getting its finances in order.
"This certainly does not mark the end of the crisis, there's still much further to go. They've still got the medium-term problems of getting their public finances in order, and obviously the issue of competitiveness."
GIADA GIANI, ECONOMIST, CITGROUP
"It could improve the situation in the very short term but I think people remain very sceptical about what kind of conditions the IMF would ask in exchange of the financing, and when the money from the other European countries is indeed available.
"I think many questions remain open."
ALEXANDER MORAITAKIS, HEAD OF GREEK BROKERS ASSOCIATION
"The news is positive. Wherever the IMF has gone, stock markets have reacted positively.
"The IMF will provide funding at a lower interest rate, about 3.75 percent, along with money at 5 percent from euro zone countries -- much better than the 7 percent plus from markets. This will help ease the pressure on the budget and banks.
"The IMF has technical know-how and will help ministries contain spending. Its reports that will follow Greek debt issues will provide a credible assessment of the economy, reassuring markets." (Reporting by Ingrid Melander, George Georgiopoulos, Renee Maltezou)