how would you feel if you were a greek conservative military officer about the communism and anarchy taking place in today's Greece...there is only 1 answer
euro actually up...looks like markets distinguishing between Greece and the rest of Europe. If tsipras and yahoofakis were hoping to use the threat of market disruption to blackmail the EU for more free money, they may have miscalculated.
The only market getting hit is the greek market.
huh, looks like nokia might be making money off of that plant in india if this news is correct...I had totally written it off.
how come marissa doing nothing except free ridign on that man's work?
you don't hear them blaming EU for rescuing them do you? How come it's always the Greeks causing trouble? Maybe because Greeks are running a scam on EU, their entire government exists to spend and steal EU transfer payments. Maybe Greeks' greed have taken them one bridge too far?
is it true that gov spending in 2014 was at same level as in 2006? What austerity? Since when is cutting back on deficit spending = austerity?
maybe Yahoofakis and his boss should wear a tie when they go begging hat in hand, trying to extort more money for their pork barrel spending...so far the only one losing out on the "im gonna blow up your market if you don't give me MORE money' strategy has been...Greece...what a bunch of slimeball welfare addict deadbeats.
The Greeks have voted in a democratic manner to put both of their hands into the pockets of their more productive and industrious fellow EU members....one suspects that their intended targets such as the Dutch, the Germans and Finns are not that enthusiastic about their intentions.
For some reason I think the Germans will wipe away Yahoofakis' smirk. I think Greece will soon find out about real austerity. Not the make-believe kind they had used to fool German bankers and other creditors.
making noise, but in the end all they want is more cash to feed their spending habits. They know the EU is their cash machine, without it Greece is just another basket case.
noob playing with fire not realizing he's already set his house on fire. dumb as so proud at yelling we're BK BK FIRE FIRE...bank runs and capital flight is already in full flight...they're turning Greece into Cyprus right before your eyes. Greece which was starting to come out of its depression is now right back where it started and all the sacrifices have been wasted...for nothing.
Iceland the government never defaulted on its debts (the government was fine, the banks were bombs), it just allowed its banks to go bankrupt...totally different situation than here where the debts are with the government and the banks until the crisis were healthy...
There is NO easy escape for the greeks, because its debts are in euros, it would have to default if it returned to the drachma. If it doesn't it will be stuck with eu rules and eu overloards, but if it goes drachma and defaults it becomes the next Argentina/Venezuela.
The rich have already left Greece by now, taking all the lucre, there is nobody left for the Marxists to tax even if they tried.
Reuters) - The European Central Bank abruptly canceled its acceptance of Greek bonds in return for funding on Wednesday, shifting the burden onto Athens' central bank to finance its lenders and isolating Greece unless it strikes a new reform deal.
The move, which means the Greek central bank will have to provide its banks with tens of billions of euros of additional emergency liquidity in the coming weeks, was a response to what many in Frankfurt see as the Greek government's abandoning of its aid-for-reform program.
The decision came just hours after Greece's new finance minister Yanis Varoufakis emerged from a meeting with ECB President Mario Draghi to claim that the ECB would do "whatever it takes" to support member states such as Greece.
In stark contrast, the ECB move, which required the support of a majority of central bank chiefs across the euro zone, shows widespread dismay with the new Greek government's plans not only in Frankfurt but across the 19-country bloc.
The ECB announced its decision, which will take effect from Feb. 11, after those governors met in Frankfurt on Wednesday.
It means that the tens of billions of euros of Greek government bonds as well as bank bonds guaranteed by Athens will no longer qualify as security in return for ECB funding to those banks.
Instead, it will now be up to Greece's central bank to provide those banks with Emergency Liquidity Assistance (ELA), a step it takes at its own risk, ringfencing those banks' funding problems from the rest of the euro zone.
Were the central bank to run into difficulties as a result, it would be up to the debt-strapped Greek government, which can ill afford it, to step in.
The unexpected move followed an appeal from Greece's new leftist government to the ECB to keep its banks afloat as it seeks to negotiate debt relief with its euro zone partners.
The ECB has now effectively refused this request, adding to Greece's problems as Germany rejected any roll-back of agreed austerity policies.
The ECB move was a setback for Greece's Varoufakis, who had earlier pledged speedy talks with international lenders on setting up a new program of reform after abandoning its earlier aid plan.
It puts Greek banks in a difficult position. Two Greek banks had already begun to tap emergency liquidity assistance from the Bank of Greece after an outflow of deposits accelerated after the victory of the hard left Syriza party in a general election on Jan. 25, banking sources had told Reuters.
The health of Greece's big banks is central to keeping the country afloat.
This happened before in 2012:
28 February 2012 - Eligibility of Greek bonds used as collateral in Eurosystem monetary policy operations
The Governing Council of the European Central Bank (ECB) has decided to temporarily suspend the eligibility of marketable debt instruments issued or fully guaranteed by the Hellenic Republic for use as collateral in Eurosystem monetary policy operations. This decision takes into account the rating of the Hellenic Republic as a result of the launch of the private sector involvement offer.
At the same time, the Governing Council decided that the liquidity needs of affected Eurosystem counterparties can be satisfied by the relevant national central banks, in line with relevant Eurosystem arrangements (emergency liquidity assistance).
Marketable debt instruments issued or fully guaranteed by the Hellenic Republic will become in principle eligible upon activation of the collateral enhancement scheme agreed by the Heads of State or Government of the euro area on 21 July 2011, and confirmed on 26 October 2011, together with a number of other measures aimed at assisting Greece in its adjustment programme. This is expected to take place by mid-March 2012.
NBG still a POS, but the headline "ECB blocking funds to Greece" somewhat exaggerated...wonder who's doing the exaggerating?
The European Central Bank has suspended the eligibility of Greek sovereign debt as collateral for its liquidity operations, starting from February 11th.
In a press release, the European Central Bank, who are having a governing council meeting today, explained their decision saying that it is currently impossible to assume a successful conclusion of the current Greek program. In other words, the ECB doesn't see Greece complying with existing bailout rules.
It is clear from the press release that the governing council also approved the Greek Central Bank issuance of Emergency Liquidity Assistance to the Greek banking system to cover any liquidity shortfall caused by today's move.
The move from the ECB today is a copy of the suspension of Greek debt that occurred in February 2012.
Following the 2012 suspension, the Greek central bank issued Emergency Lending Assistance (ELA) - a national central bank level liquidity operation outside of normal ECB monetary policy - to Greek banks that grew to total 123 billion euros by November 2012. Greek sovereign debt did not become eligible again at the ECB's main liquidity operations until December 2012, with ELA dropping to by 90 billion at that point.
For Greek banks, this move by the ECB will not directly be a disaster as they have reduced their exposure to the Greek sovereign since 2012 and so are less reliant on that debt as collateral. The press release emphasizes that this move is not a ban of Greek banks from ECB operations. Any collateral that they are currently using that is not Greek sovereign debt will still be eligible.