– The ECB has decided to remove the exemption, introduced in 2010, which allowed the Greek banks to source liquidity providing in exchange guarantee bonds. Meanwhile, according to some media, the government greek could exhaust its cash by 25 February. The refusal of Prime Minister Alexis Tsipras to accept more bailout loans could result in a dreaded “cash crunch”.
The European Central Bank puts the government Tipras the wall in the middle of its offensive anti-austerity, removing the Greek banks access to normal liquidity auctions and judging the greek bailout program at risk. Dragons wasted no time and the close start almost immediately: the new rules will be applied in a week, from 11 February. That exemption, introduced in 2010, allowed the Greek banks to refinance despite the ECB would provide a guarantee Greek government bonds with speculative ratings at high risk. An exception always conditioned to the permanence of Greece in the rehabilitation program coordinated by the troika, currently due on February 28th.
Monito ECB in Athens – With the new Executive greek decided not to renew its commitments with the Troika and to pursue a debt restructuring, the ECB moves in advance and, in a kind of deja vu of the crisis in Cyprus where he had equally close the taps to the banks, sends a signal Hardness in Athens: a stop to the reforms and the progress made on fiscal consolidation will be expensive.
The agency Bloomberg writes that, if not renewed its program for a new line of credit, Greece may not be able to meet its payments March 25 would be the equivalent of a default.
In fact, the ECB, which is part of the troika of creditors along with the EU and IMF, judge the intentions of Tsipras and his finance minister: “Currently it is not possible to assume a successful conclusion of the review of program “rehabilitation greek, the statement said in Frankfurt.
Liquidity Crisis – With its decision, the Eurotower plays tough in negotiations with Athens, which has placed as stakes the end of the Troika, a swap on Greek debt securities indexed to growth and a breakthrough anti-austerity. The four major Greek banks, in front of the escape from the deposits in the weeks triggered pre-election, are already hanging on the emergency liquidity provided from Frankfurt via the ELA (emergency liquidity assistance), a mechanism must be approved by a majority of two-thirds and renewed from time to time every two weeks. Its use has already exceeded 40 billion euro, and just today, among the topics under discussion at the ECB, included the request of the National Bank to increase by an additional 10 billion using the emergency facility. The ELA, supplied by the Greek National Bank, is then ratified by the governors of Frankfurt. Just Jens Weidmann, Bundesbank president, questioned on whether to continue to support the G reek banks.
Dossier greek at the center of the Eurogroup – Thursday Varoufakis will by German colleague Wolfgang Schaeuble. Then, the dossier Greece will be the focus of the Eurogroup in Brussels next week, right on the eve of the EU Council of 12 February. Draghi met, the minister had called “fruitful” his talks with President of the ECB. Draghi would reject his request to convert to the perpetual bonds Greek bonds purchased by the ECB. But sources Eurotower was also found that Draghi, facing the new minister greek, had “clarified the mandate of the ECB and asked the new government to deal quickly and constructively with the Eurogroup to maintain financial stability.”
The Athens government has started to head down immediately after taking office, and will be presented in Brussels, where Tsipras will meet Chancellor Angela Merkel, calling for a stop to austerity, a swap of its debt and the end of the Troika . But given the post at stake, with 60% of the greek debt in the hands of European governments and a large chunk of the ECB, Frankfurt is not watching, the Chancellor has already set stringent poles (including the Troika) and noticed how both Athens isolated.
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