greek debt


Mario Draghi, President of the European Central Bank (ECB), addresses the media during his monthly news conference at the ECB headquarters in Frankfurt

Draghi corners Tsipras

MADRID | By JP Marín ArreseTsipras rebellion was ruthlessly quelled by the ECB governing board last night. Neither Greek sovereigns, nor publicly-guaranteed bond issues, will stand as eligible collateral for funding facilities, thus plunging the financial system into a crippling credit-crunch. The emergency liquidity arrangement managed by the local central bank severely caps new public financing to a meagre €3.5 billion amount. The new government faces the unpalatable choice between surrender or bankruptcy.


greek banks

Pressure on Greek debt: A nudge or a punch in Athens’ face?

MADRID | The Corner | Despite the markets’  first negative reaction to the ECB’s restricting Greece access to its direct liquidity lines, Morgan Stanley analysts reminded on Thursday that nobody should be that surprised: in 2012, one third of the Greek balance sheets were financed by the ECB, and most via ELA. Plus, Greek banks can still get ECB liquidity if they use ECB eligible collateral.


greece demonstration

Less is more: The Greek government needs a chisel, not a sledgehammer

By Jens Bastian via MacroPolisThe parliamentary majority achieved by the SYRIZA-led coalition government following the 25 January elections constitutes a strong political mandate in mathematical terms. Among one of the many immediate challenges facing the new administration is trying to translate its numerical advantage into a majority of support among Greek citizens, including those who did not vote for the senior coalition party. 


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Draghi holds the winning cards

MADRID | By JP Marín ArreseAttempts to convince Tsipras and his colleagues to call off their open mutiny against the discipline imposed under the Greek bailout seem to be doomed. The Greeks bet on a strategy that forces European partners to cave in, should the prospect of huge turmoil materialise. After all, they are fully aware that Greece will prove unable to repay its debt unless it grows at 7% rate for the coming 30 years. 


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Greek odyssey to dominate the week ahead

MADRID | By Sean Duffy | Markets will be looking to how relations between the new Greek Government and European creditor nations play out in the week ahead. After a week of tense negotiations, the stakes are increasing all the time. Greek claims of insolvancy have irked its eurozone partners, but can all sides find a middle ground in the coming days?



48 Hour General Strike In The Greek Capital

What next Greece?

By Gabriel Sterne via MacroPolisIt is easier to write down big questions on Greece’s future; harder to answer them: (1)   Will Syriza win with an overall majority?; (2)   Will a new programme be agreed in time?; (3)   To what extent will it stay on track?; (4)   How much additional debt relief and financing will the Troika give to Greece, and in what circumstances?; (5)   If and when the wheels come off the programme, is an exit inevitable? Would it be managed or chaotic? One thing we can be sure about though. The scene is set for a political showdown, the likes of which the Euro-crisis has not yet seen.


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Greek debt viable, no haircut needed

MADRID | The Corner | As Greece and its euro-area creditors meet on Thursday to review its progress ahead of another round of talks on repayment terms for its public deb, the worst for Athens seems to be over. The Mediterranean country doesn’t need a haircut, its debt is sustainable, as head of the EFSF ESM Klaus Regling commented in Brussels on Tuesday. However, and despite the profound, painful reforms the country has been through, recovery is hampered by private debt of households and companies: about 164 billion euros ($208 billion), 90% of GDP.