ESM Wants Assessment of Greek Request from ECB and European Commission



ESM2012

A leaked document that is allegedly the letter sent by European Stability Mechanism (ESM) Board of Governors Chairperson Jeroen Dijsselbloem to the European Commission and the European Central Bank (ECB), is asking them to examine the Greek request for ESM assistance made earlier in the day.

The letter asks the two institutions to look into three issues.

a) To examine any risk currently existing to the financial stability of the euro as whole, as well as for each member-state separately.
b) To “assess the actual financing needs of the Hellenic Republic.”
c) To examine the sustainability of the Greek debt.

The ESM also asks for the collaboration of the International Monetary Fund (IMF) in this process. The IMF published a report last week that found the Greek debt to be unsustainable. On the other hand European Commission President Jean-Claude Juncker said after Tuesday’s Euro Summit that the debt issue could be discussed in October.

The leaked document can be read in full here.