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1 Jul 2015
ECB meets Wed to review ELA to Greece - Westpac
FXStreet (Bali) - Sean Callow, FX Strategist at Westpac, notes that the ECB will meet on Wednesday to review the emergency liquidity assistance to Greece.
Key Quotes
The ECB meets to review the emergency liquidity assistance to Greece, which was frozen at (reportedly) EUR89bn on the weekend despite the obvious increased strain on Greek banks.
"The expiration of the bailout program and Greece’s failure to make its IMF payment raises questions over whether the lending is “to a solvent financial institution…that is facing temporary liquidity problems”."
"But the ECB is unlikely to actively deepen the Greek crisis by reducing liquidity so long as lenders and Greece both say they are willing to negotiate an agreement."
"Eurozone finance ministers will also meet again to discuss Greece’s latest proposal but without any particular sense of optimism."
Key Quotes
The ECB meets to review the emergency liquidity assistance to Greece, which was frozen at (reportedly) EUR89bn on the weekend despite the obvious increased strain on Greek banks.
"The expiration of the bailout program and Greece’s failure to make its IMF payment raises questions over whether the lending is “to a solvent financial institution…that is facing temporary liquidity problems”."
"But the ECB is unlikely to actively deepen the Greek crisis by reducing liquidity so long as lenders and Greece both say they are willing to negotiate an agreement."
"Eurozone finance ministers will also meet again to discuss Greece’s latest proposal but without any particular sense of optimism."