For weeks and months, the European Central Bank accumulated more and more risks in Greece. She has the Ela-emergency loans for ailing banks still further increased, although the doubts about the financial institutions with its mountain of bad loans increased steadily. The ECB has thus, to be honest, having financed the Greek wrongful because the ailing banks bought government bonds in turn.
Author:. Philip Plickert, editor-in business, in charge of “The Economist”
If no new auxiliary billion from Europe had the time being averted financial collapse, the Ela-bomb had exploded and flew the central bank around the ears. Now that the “Grexit” was averted at the last minute for the time being, the ECB can breathe. She escaped without injuries and losses. The bridge loan granted by the EU member states Athens, the ECB will also help. So Greece can pay off next Monday a loan of more than EUR 3 billion held by the ECB.
In order for the ECB for the time being out of the woods. The daring game is once again gone well. But the spiral of aid packages, promised reforms and foreseeable disappointment rotates only one revolution further.
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The wrongful in Greece continues - just not at the expense of the central bank, but at the expense of European taxpayers. The loads are taken by the ECB, now accept bailout funds. The Draghi and the ECB had always demanded. After the rescue of insolvent countries and the support of bankrupt banks is not the task of the central bank, have to decide about elected governments. Europe's political leaders have chosen and enter new billion-loans. The word "credit" is misleading because foreseeable can not be repaid the money.
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The government can be sure that Draghi will continue to be available with its cheap money-gun. This helps to keep the interest rates for heavily indebted countries low. Aptly has to the bond investor Bill Gross tweeted recently: Life team of EU, ECB and IMF operates in Greece ultimately a circular Ponzi game. One pushes to the other money, but in the end is the bitter realization that Greece is insolvent and its debt burden can never wear. Then the European taxpayer will have to write off a large part of aid loans.
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