European Central Bank (ECB) President Mario Draghi dismissed fears of a possible Greek default. Asked about a Greek default during a regular news conference in Frankfurt on Wednesday, Draghi said: “I don’t even want to contemplate that. And based on the Greek government leaders’ statements, this option is not contemplated by themselves as well. So I’m not ready to discuss any possible situation like that.”
Commenting on how far the Emergency Liquidity Assistance (ELA) mechanism could be extended for Greece, the ECB President said: “I think the answer to your question is entirely in the hands of the Greek government. As you know, we approved ELA and we will continue to do so, extend liquidity to the Greek banks while they are solvent and they have adequate collateral. So from this viewpoint we have always been and we continue to be a rules-based institution.”
“It is entirely depending on the conditions that will be in place” after negotiations between Greece and its Eurozone partners, Draghi said.