“Greek market access is in doubt given rising country risk premium”

Greek market access in two charts

“The implication is that Greece may well need to sign up to a further European programme by the end of June. And the domestic politics underlying that decision appear particularly difficult for the Greek government. Put bluntly, another flare up in the debate around Greece’s future within the currency area cannot be discounted,” the same experts pointed out.

Given the deposit outflow, ELA borrowing is crucial for Greek banks to fill the funding gap.

Any limitation in ELA or rise in haircuts on ELA collateral might create funding problems, potentially escalating the crisis,” Barclays’ Giuseppe Maraffino, Francois Cabau pointed out.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.

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