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Thursday 05 February 2015
For years, the ECB has accepted Greek government bonds as collateral, although that did not meet the criteria as junk papers of the Federal Reserve. But that’s over now. The ECB responsive to price reversal of the government Tsipras in austerity.
The European Central Bank (ECB) has the Greek banks the money supply to some extent turned down, but not completely cut off from the inflow of cash. The financial institution is a special rule on Greek government bonds and takes the banks so that one of their main sources of money.
The ECB said that in future no more than to accept collateral for bank loans bonds. The rule applies from 11 February. The reason given was that the decision was in accordance with the “Rules of the Eurosystem” and currently can not be assumed that the review of the Greek reform program will complete successfully.
For some years Greece has benefited because of its difficult economic situation of the exception. Although the government bonds did not meet the criteria of the ECB for the rating classifications, they accepted it as collateral.
The ECB responded with their decision now apparently on tuition turn of the new government in austerity. Currently, could not be assumed that the review of the Greek reform program will successfully completed, the central bank said in support of its decision. This also is in accordance with the “Rules of the Eurosystem”.
Schulz sends warning to Athens
The new Greek government rejects the austerity of international donors and control by the so-called troika of the European Union, the International Monetary Fund (IMF) and ECB rejects. The country is but further threatened by bankruptcy and need financial assistance.
EU Parliament President Martin Schulz warned Greece to a state bankruptcy, Athens should not comply with the agreements. Schulz told the “Handelsblatt” if Greece “one-sided” aufkündige the contracts, the other side is no longer required to respect them. Then no money flowed more to Athens and the state could not be financed. Tsipras had “no choice”, said the EU Parliament President. He must fulfill the obligations to the European partners received. Only in this way also concessions to Athens were possible.
In an interview with the “Ruhr Nachrichten” Schulz also completed again a Greek exit from the euro zone. This means “high risk with incalculable damages,” he said. “No one wants that.” Instead, it is important to tackle the economic crisis in Greece. It would be necessary structural reforms and “smart investments in sustainable growth.”
Currently, Prime Minister and Minister of Finance Alexis Tsipras Yanis Varoufakis advertise in Europe for a debt relief for Greece. Varoufakis had met on Wednesday with ECB chief Mario Draghi and now talks in Berlin with German Finance Minister Wolfgang Schäuble.
No excitement in Athens
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The Greek Finance Ministry reacted calmly to the announcement of the ECB to Greek bonds. This had “no adverse effect” on the financial sector of the country, it said in Athens. The sector continues to remain protected because there were other channels money.
The financial institutions would have access to the PA emergency liquidity assistance, the report said. ELA (Emergency Liquidity Assistence) is an agency of the national central banks of the Eurosystem. In this temporarily illiquid banks can provide liquidity against collateral support if the capital adequacy is ensured with the institutions. But the decision ECB increasing the pressure on the euro group to find a solution that is in “mutual interest” Greece and the euro zone, the ministry said.
Source: n-tv.de
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