Tsipras: ECB’s QE Program No Longer Crucial for Greece

Despite opposite statements in the past, prime minister Alexis Tsipras no longer believes that stimulus from the European Central Bank (ECB) is crucial for the economic recovery in Greece.

“I think we will join the QE (quantitative easing) program but it’s not so crucial for us, as we believed before,” Tsipras told CNBC.

In the past two years, the prime minister had said that bond purchasing from the ECB would give confidence to investors to shore up their investments in the southern European country, and thus support the economic recovery.

Greece is ineligible to be considered under the ECB’s stimulus program due to the fact that its debt doesn’t have an investment grade rate from credit rating agencies.

However, these agencies might change their grades if Greece successfully concludes the end of the third bailout in the summer, which is the government’s goal, and gets its debt restructured.

“Our estimation before the second (bailout) review was that QE (quantitative easing) was key in order to access the market, but it wasn’t true. The developments showed that it wasn’t a precondition,” Tsipras told CNBC, speaking on the sidelines of the Hellenic-American Chamber of Commerce conference in Athens.

“For us, there’s no goal to access QE before the end of the program,” Tsipras added.

Source: CNBC