Tuesday, 7 July 2015

ECB getting a bit short with Greece

The Greek government complained yesterday that they are no-longer being taken seriously. Apparently they sent a 47 page document to the EU and they only got a 5 page response - which shows the EU isn't really trying anymore.

Also yesterday the ECB came out with this press release:

https://www.ecb.europa.eu/press/pr/date/2015/html/pr150706.en.html

To save you reading it, what it says in summary is: no more euros to keep the Greek banks liquid will be provided and they want more collateral to support the loans already made. In fact to cover the €89bn handed over so far they want all the assets of the all banks in Greece. Nervous much? The phrasing of the press release is decidedly casual. It just says "haircuts" are to be adjusted!

"Haircut" is a slang expression that you would not expect to see in any serious document. The ECB seems to have (or is trying to look as if they have) delegated talking to Greece to a spotty coffee-fetching intern.

Meanwhile this blog is happy to maintain its core prediction that whatever happens in Greece will involve more talks.

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