Bloomberg: Greek FinMin Admits Grexit Still on Table



tsakalotos

Greek Finance Minister Euclid Tsakalotos said that Greek bonds will soon be eligible for the European Central Bank’s asset-purchase program, in an interview with Bloomberg. He pointed to the benefits of this, including the gradual recovery of investor confidence.

Greece is currently excluded from quantitative easing. Greece is also excluded from regular financing lines, however the flow of bailout loans is expected to resume this month following the government’s pledge to continue on the route to austerity so that Greece can stay afloat.

On June 2, the governing council of the ECB met, however another policy meeting was deemed necessary on Greece. “Once you have QE, and depending on what your take is on the debt situation, you can take Grexit off the table,” said Tsakalotos, who also told Bloomberg that only then can “you have a straight runway for investors.”

Bank of Greece Governor Yannis Stournaras said on Wednesday that the country’s banks would reap benefits from the completion of the bailout review. “Greek banks are expected to participate in the coming targeted long-term refinancing operation,” he said.