Weidmann Says ECB Mustn’t Raise Greek Liquidity Without Program
2015-07-09 07:05:31.248 GMT
By Paul Gordon
(Bloomberg) -- ECB Governing Council member Jens Weidmann
says at event in Frankfurt that “the Greek government has not
only walked out on the previous agreements, but has been widely
criticized as an unreliable negotiating partner.”
* “No one can seriously say right now if these days will mark
a turning point in European monetary history”
* “Central banks – although they have the means – have no
mandate, in my view, to safeguard the solvency of banks and
governments. That kind of implicit redistribution is a
matter for governments or parliaments, if at all”
* “The Governing Council recently ensured that the provision
of emergency liquidity assistance (ELA) was frozen, and I
welcome the fact that further deposit outflows have been
stemmed by the capital controls”
* “ELA is no longer being used to finance capital flight.
This certainly represents a step forward, and shifts the
responsibility to where it belongs: with the governments and
parliaments”
* “The Eurosystem should not increase the liquidity
provision, and capital controls need to stay in force until
an appropriate support package has been agreed by all
parties and the solvency of both the Greek government and
the Greek banking system has been ensured
* ‘‘In the event that further short-term assistance is thought
to be desirable or necessary, it is up to fiscal
policymakers to provide ad hoc financial support”
* NOTE: Euro Area Said to Consider Guarantee Plan for ECB Aid
to Greece
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Paul Gordon in Frankfurt at +49-69-92041-224 or
pgordon6@bloomberg.net
To contact the editors responsible for this story:
Fergal O’Brien at +44-20-3525-7152 or
fobrien@bloomberg.net
Paul Gordon
2015-07-09 07:05:31.248 GMT
By Paul Gordon
(Bloomberg) -- ECB Governing Council member Jens Weidmann
says at event in Frankfurt that “the Greek government has not
only walked out on the previous agreements, but has been widely
criticized as an unreliable negotiating partner.”
* “No one can seriously say right now if these days will mark
a turning point in European monetary history”
* “Central banks – although they have the means – have no
mandate, in my view, to safeguard the solvency of banks and
governments. That kind of implicit redistribution is a
matter for governments or parliaments, if at all”
* “The Governing Council recently ensured that the provision
of emergency liquidity assistance (ELA) was frozen, and I
welcome the fact that further deposit outflows have been
stemmed by the capital controls”
* “ELA is no longer being used to finance capital flight.
This certainly represents a step forward, and shifts the
responsibility to where it belongs: with the governments and
parliaments”
* “The Eurosystem should not increase the liquidity
provision, and capital controls need to stay in force until
an appropriate support package has been agreed by all
parties and the solvency of both the Greek government and
the Greek banking system has been ensured
* ‘‘In the event that further short-term assistance is thought
to be desirable or necessary, it is up to fiscal
policymakers to provide ad hoc financial support”
* NOTE: Euro Area Said to Consider Guarantee Plan for ECB Aid
to Greece
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Paul Gordon in Frankfurt at +49-69-92041-224 or
pgordon6@bloomberg.net
To contact the editors responsible for this story:
Fergal O’Brien at +44-20-3525-7152 or
fobrien@bloomberg.net
Paul Gordon