Google+ Badge

Friday, February 13, 2015

Don't Make Us Do It: ECB Wants a Political Deal on Greece - Bloomberg Business

Don't Make Us Do It: ECB Wants a Political Deal on Greece - Bloomberg Business

The ECB is concerned that the liquidity support is in fact being used to keep the government itself in cash, through the recycling of short-term bonds, or T-Bills. That borders on direct monetary financing, banned under European Union law.
....

Without political progress and continued funding, accelerated deposit flight and capital controls loom, according to Gabriel Sterne, head of global macro research at Oxford Economics in London.
“Cyprus has written a script, Greece’s could be similar,” he said in a note to clients. “Closing a nation’s banking system is probably the most economically destructive act that could be wrought in peacetime.” 

No comments:

Post a Comment