The European Tribune is a forum for thoughtful dialogue of European and international issues. You are invited to post comments and your own articles.
Please REGISTER to post.
Greek banks would no longer have access to refinancing with the ECB
This is the policy decision that should be highlighted.
There is no law of nature, or of economics, or of the European Union that states that the ECB can not rediscount new Greek bonds that are used to recapitalise the "good bank" part of the Greek banks, after the bondholders, management, interbank loans and deposits above the guarantee limit have been destroyed. Those new bonds will be if not pristine then at least much lower risk by any rational analysis than the old Greek bonds. Refusing to rediscount the new bonds while being prepared to rediscount the old bonds is an explicit admission that at least one of the following is true:
by DoDo - Oct 5 7 comments
by gmoke - Oct 1 3 comments
by Luis de Sousa - Sep 28 22 comments
by Frank Schnittger - Oct 5 2 comments
by Frank Schnittger - Sep 24 19 comments
by ATinNM - Sep 24 16 comments
by DoDo - Sep 12 26 comments
by DoDo - Sep 10 23 comments
by DoDo - Oct 57 comments
by Frank Schnittger - Oct 52 comments
by gmoke - Oct 13 comments
by Luis de Sousa - Sep 2822 comments
by ATinNM - Sep 2416 comments
by Frank Schnittger - Sep 2419 comments
by gmoke - Sep 23
by DoDo - Sep 1226 comments
by DoDo - Sep 1023 comments
by epochepoque - Sep 8