More cash for banks with same pa­pers

Kathimerini English - - Front Page - YIAN­NIS PAPADOYIANNIS

Greek banks will be able to draw ad­di­tional liq­uid­ity from the Euro­pean Cen­tral Bank after Frankfurt is­sued a guide­line yes­ter­day that re­vises the “hair­cut” ap­ply­ing to se­cu­ri­ties is­sued or fully guar­an­teed by the Greek state.

The ECB an­nounced that the re­vi­sion of the hair­cut on the val­u­a­tion of Greek se­cu­ri­ties, which the lender ac­cepts as col­lat­eral for the sup­ply of cash to Greek banks, was de­cided on the ba­sis of the gen­eral im­prove­ment in mar­ket con­di­tions for the coun­try’s se­cu­ri­ties.

Banks es­ti­mate that this decision will al­low them to draw ad­di­tional liq­uid­ity amount­ing to 1012 bil­lion euros with­out hav­ing to sub­mit any new col­lat­eral to the ECB.

Mean­while banks are fol­low­ing de­vel­op­ments in the gov­ern­ment’s talks with its cred­i­tors, but they are also set­ting their pri­or­i­ties for the post-stress test era and the coun­try’s re­turn to growth. The chan­nel­ing of at least 10 bil­lion euros of fund­ing to house­holds and cor­po­ra­tions in 2015, the ef­fi­cient han­dling of non­per­form­ing loans and a re­turn to profit are lenders’ three main ob­jec­tives, pro­vided of course that the coun­try con­tin­ues its smooth course.

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