ECB Still Looking for ‘More Clarity’ on Greek Debt Relief Before Buying Gov’t Bonds, Source Says

A recent report by Reuters said that what kind of debt relief Greece will be granted by its international lenders is something which the European Central Bank (ECB) is still looking for more clarity on, according to a source close to the issue.

“It’s a very positive step in the right direction but you need to see more clarity on debt to include Greece in the PSPP,” the source said. “We need more specificity on the debt measure.”

If the ECB is to buy Greek government bonds as part of its monetary stimulus program which is a 2.3 trillion euro bond buying program, it will need Greece to obtain debt sustainability over a long-term period of time, as it has repeatedly reiterated, the source said.