ECB’s Draghi Wants Debt Relief for Greece, States Concern



European Central Bank Chief Maria Draghi expressed concern about the sustainability of the Greek debt and said that assessment on the debt was necessary before Greece could participate in the Quantitative Easing Program. “Discussions on the sustainability of the Greek debt continued. We expressed concern, and steps should be taken,” said Draghi on Thursday.

Draghi revealed that the ECB plans to make an independent assessment. “When time comes we will examine independently the issue of the debt sustainability,” said Draghi, adding that “until then it is premature to speculate and weave scenarios.” He also reportedly said that discussion about the purchase of Greek bonds in the QE context is also premature.

The ECB approved a request by the Bank of Greece to leave the borrowing ceiling for Greek banks through the Emergency Liquidity Assistance mechanism ELA unchanged at 41.8 billion euros until Wednesday, November 2.

The Bank of Greece welcomed the ECB’s request to leave the borrowing ceiling for Greek banks through ELA unchanged stating that this reflected a stabilization in liquidity conditions in Greek banks, taking in mind deposit flows in the private sector.