06-30-2015, 10:44 PM
Around 300,000 businesses have closed in Greece since the start of the financial crisis. Those that remain are often small, family-run affairs. In the face of tumbling consumer spending, higher costs and debt, many are just hanging on by a thread... Greek banks have 215 billion euros ($240 billion) of loans on their books, and at least 80 billion euros have turned bad, according to the Bank of Greece.
These Are the Businesses That Owe Billions to Greek Banks - Bloomberg Business
We would make three points about the ECB’s likely response. First, the ECB’s tolerance of deteriorating financial market conditions in the Euro area, that are driven by developments in Greece, is likely to be very limited. Hence, it could move very quickly from today’s verbal warning to announcing a policy response. Second, which tool the ECB will use in the event of contagion will depend on the severity and the form of such contagion. Hence, it will matter whether any contagion occurs via bond markets or via banks, and how it is distributed across countries. The ECB is likely keeping an open mind until it sees how financial markets respond. Third, as we noted recently, the ECB pledge today to use all instruments available “within its mandate” has been greatly expanded by the recent ruling of the European Court of Justice (ECJ), opening the door to targeted interventions that could be described as an Anti-Contagion Purchase Programme, or ACPP. Hence, the ECB has options other than simply expanding QE or activating OMT.
Greece: Analyst views on capital controls, bank holidays | FT Alphaville
Greek officials said they are seriously considering suing the European Central Bank itself for freezing emergency liquidity for the Greek banks at €89bn. It turned down a request from Athens for a €6bn increase to keep pace with deposit flight. This effectively pulls the plug on the Greek banking system. Syriza claims that this is a prima facie breach of the ECB’s legal duty to maintain financial stability. “How can they justify setting off a run on the Greek banking system?” said one official.
Greece threatens top court action to block Grexit - Telegraph
Apparently, there was the basis for a deal at some stage last week; but then at the last moment, in comes the International Monetary Fund to say that the conditions were not enough, and insist on the addition of a whole series of demands on pensions reform that were bound to be unacceptable to Greece’s Syriza-led government.
For Greece's international creditors, regime change is the ultimate goal - Telegraph