Greek debt: ECB 'to maintain funding limit'

[Bosonic]

Last edited Sun Jun 28, 2015, 08:53 AM - Edit history (2)

Source: BBC

The European Central Bank says it will maintain its emergency funding of Greek banks at the level agreed on Friday.

The ECB said that it stood ready to review the decision on its Emergency Liquidity Assistance (ELA) and would work closely with the Bank of Greece.

BBC economics editor Robert Peston says the ECB is not providing any additional aid to Greece, which will lead to huge pressure for capital controls.

Greek banks depend on ELA, and cutting it could push Greece out of the euro.

Read more: http://www.bbc.co.uk/news/world-europe-33304674

[TexasTowelie]

1. I read that there were over one billion euros withdrawn from Greek banks this weekend.

It's terrible that the Greek people will have to endure further hardships.

[muriel_volestrangler]

2. Looks like France isn't convinced that needs to happen

France’s prime minister, Manuel Valls, has dropped a clear hint that the European Central Bank should keep supporting Greece’s banks:

Speaking on Europe 1 radio, Valls said:

“The European Central Bank is independent, but I don’t doubt it will assume its responsibilities.

I don’t think it can cut off support, to put it another way.”

Technically, it takes a two-thirds majority at the ECB to reject a request for more emergency funding from a national central bank.

http://www.theguardian.com/business/live/2015/jun/28/greek-crisis-ecb-emergency-liquidity-referendum-bailout-live#block-558fbe5de4b024248ae9a476

“I cannot resign myself to Greece leaving the euro zone ... We must find a solution.”

http://www.theguardian.com/business/live/2015/jun/28/greek-crisis-ecb-emergency-liquidity-referendum-bailout-live#block-558fc042e4b024248ae9a479

[DCBob]

3. I think there is still some dealing to come.

Most do not want Greece to default and leave the EU. They know that will be a disaster for everyone.

[cstanleytech]

5. Oh I agree.

But imo a fair deal would be one that makes the Greeks and the lenders cuss or in other words, dont wipe the debt itself but permanently wipe the interest rate.
Then give the Greek government 10 years before they have to start making payments to bring the remaining balance down and during that 10 year window the Greeks must implement tax and service reforms that bring their books into balance.
That way the lenders will eventually get their money though it will take a long time to do so but atleast they will get it back and it makes a hell easier for the Greek government to focus on doing the reforms that they need to do without having worry right atm if they will have to the money to make an interest payment on the money they do owe.

[DCBob]

6. That does sound reasonable.

I suspect that something like that is being discussed... if all else fails.

[Lucky Luciano]

8. Don't forget that Draghi has the QE weapon now.

He can now use money to buy Spanish, Portuguese bonds, etc. that was not in place before. This is not what QE was designed for, but this can easily be done to protect the EU from a contagion effect.

[Bosonic]

4. ELA to Greek banks maintained at its current level

ELA to Greek banks maintained at its current level

https://twitter.com/ecb/status/615132974330286081

PRESS RELEASE
28 June 2015 - ELA to Greek banks maintained at its current level

ECB takes note of decision on Greek referendum and the non-prolongation of the EU adjustment programme
ECB will work closely with Bank of Greece to maintain financial stability
Emergency liquidity assistance maintained at Friday’s (26 June 2015) level
Governing Council stands ready to review decision
Governing Council closely monitoring situation and potential implications for monetary policy stance

http://www.ecb.europa.eu/press/pr/date/2015/html/pr150628.en.html

[Sunlei]

7. One positive is Greece has a vibrant and robust tourist industry, with beautiful Sea.

WW2, nazis devastated their country took everything except the major ruins.

They'll come back slow and sure as long as the world-banks don't scam them again.