Greece: ECB gives a slight reprieve in Athens – Le Point

The ECB granted a reprieve Sunday in Athens maintaining funding for Greek banks, but the specter of default was not removed, and the country was preparing for an emergency with no doubt a capital controls. Following an emergency meeting of its Board of Governors, the European Central Bank (ECB) said in a statement that “given current circumstances,” it maintained “the emergency liquidity supply ceiling Greek banks at Friday decided. “

A real surprise

The central bankers and unprepared the many commentators who expected the ECB on Sunday cuts Emergency loans tap ELA only source of funding for Greek banks and the whole economy of the country, following the resounding failure of the negotiations between Greece and its creditors (ECB, IMF, European Commission). For five months they were discussing a bailout of the country in exchange for reforms and budget cuts. The maximum amount of ELA loans is currently around EUR 90 billion.

According to press reports, the ECB, which stands “ready to reconsider” his decision at any time, would have agreed to maintain the ELA funding in exchange for the promise of Athens Monday to set up capital controls. The Greek Finance Minister Yanis Varoufakis refused to comment on the point that Sunday, in an interview with the BBC. The Greek system stability council meets in Athens in the afternoon, and could decide such control to avoid hemorrhage Greek liquidity. It would also mean that banks in Greece remain closed Monday.

Liquid for tourists

Otherwise, the safety net deployed by the ECB would not suffice to prevent a panic Monday while already throughout the weekend, queues lengthened to distributors and the Greeks were concerned about their future in the euro zone. “Everybody is very sad, very upset and depressed,” he told Anna Apostolopoulos, 42, sitting at a table at a cafe in Glyfada, a seaside resort half an hour from Athens. Several European capitals, including Berlin, have recommended to tourists bound for Greece to bring cash.

The governor of the Bank of Greece Yanis Stournaras said his institution would “take all necessary measures to ensure financial stability of Greek citizens in these difficult circumstances, “the statement released by the ECB. As for central bankers, the urgency of preventing the collapse of the Greek banking system and contagion to the rest of Europe. Strong turbulence are also expected in the markets. “If you ask me if (the markets) are ready for what is happening in Greece, I reply that no, they do not provide, in their evaluations, no risk,” said in an interview with La Stampa released Sunday OECD economist Catherine Mann.

Angela Merkel holds “the key”

The announcement Friday by Greek Prime Minister Alexis Tsipras to submit to his countrymen by agreement of the referendum proposal put on the table the day before by creditors – which required reforms it deems unacceptable – caused the cascade of the weekend events. The Greek Parliament voted Saturday in favor of the referendum held on 5 July. But “from a legal point of view, the referendum will be on the proposals and arrangements that are no longer valid,” said the executive director of the International Monetary Fund (IMF) Christine Lagarde in a television interview on the night of Saturday Sunday.

Some kept hoping to find a settlement by Tuesday, expiration date of the current program and a maturity of 1.5 billion euros of Greece to the IMF . French Prime Minister Manuel Valls urged Greeks to “return to the negotiating table,” and called for “anything” if the country remains in the euro.

In an interview in the German tabloid Bild , Yanis Varoufakis held that Chancellor Angela Merkel held the “key” to resolve the crisis. “EU government leaders must act. And among them [Merkel] holds as a representative of the largest countries the key, I hope she will use it,” said the Greek Minister , adding that his government was “open to new proposals from institutions”