The European Central Bank came to a decision during the last Board of Directors meeting, on January 7, in regards to Greece. According to ECB, the new Greek government must implement its commitments and come to an agreement with the country’s lenders, so that liquidity continues to flow to Greek banks.
The ECB is willing to maintain the exemptions aimed at providing liquidity to Greece, only if the Greek government meets its obligations.
In regards to the upcoming elections, the ECB did not take any sides, however the organization noted that any new government should be formed quickly, so that the country is able to finalize its negotiations with troika (IMF/ECB/EU). Furthermore, the ECB spoke with Bank of Greece Governor Yannis Stournaras, requesting that the country abides to a new Memorandum and a proactive support line, in order for Greek banks to be able to receive funds from the lenders.
Greek banks received 2.3% more funds in November, reaching a total of 44.85 billion euros. However, despite the fact that the banks have reduced their exposure, they are still in need of ECB’s funding.
The issue of state guarantees, that expire and need to be replaced next March, was also raised during the EBC Board of Directors meeting. According to Greek newspaper “Kathimerini,” ECB and the Greek banks are currently investigating several of their assets which may be accepted by the ECB as collateral.
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