02-05-2015, 12:33 PM
German Chancellor Angela Merkel indicated that a diplomatic offensive by newly elected Greek Prime Minister Alexis Tsipras to ease his nation’s bailout-aid requirements is failing to win over converts.
Merkel Says Greek Diplomatic Offensive Is Failing - Yahoo Finance
Greek sovereign bonds, T-bills and government-guaranteed debt will no longer be welcome at the ECB Tower as of 11 February. The waiver — which let in Greek debt despite its junk-rated status for as long as Greece was in a programme — has been something of a merry-go-round before, in previous points of crisis between Greece and its official creditors. Bank bonds guaranteed by the government were also due to be kicked out at the end of this month because of a two year-old decision. This is the first cut. As Karl Whelan has explained, Greece’s use of ELA will be closely watched by the ECB’s Governing Council from this point and the screws could be turned here too in time. ELA is costlier for Greek banks to use — and is genuine lending of last resort — so it’s a lot more important for Greece’s position for this bit of plumbing to stay on.
Greece and the ECB: the first cut | FT Alphaville
One of the key uncertainties surrounding the situation in Greece is the relationship between the Greek banks and the ECB. Lots of press coverage is suggesting the ECB has a set of well-established rules that mean it will not be able to lend to Greek banks in March unless the government negotiates a new EU-IMF program to replace the one expiring at the end of this month.
What’s Going On with the ECB and Greece? — Bull Market — Medium
“Deposit outflows from Greek banks have been evident since early December 2014, but they accelerated in January 2015,” said Mr Nicolaides. “According to our estimates, deposits have declined by more than €12bn so far, from a private sector deposit base of €164.3bn at the end of November 2014.”
Greek banks find support after fall - FT.com
Europe’s most powerful policy makers dismiss the idea, investors fear it, and it would almost certainly face fierce resistance from within the Continent’s richer countries. Yet talk of slashing the government debt loads of European countries, starting with Greece, is back.
As Greece Rebels, the Notion of Debt Forgiveness Returns - NYTimes.com