Federal Reserve Chairman Urges hard line against Athens
Weidmann will also invest in ELA emergency loans "strict standards"
ms / lz Frankfurt - Bundesbank President Jens Weidmann calls for a hard-line stance of the European Central Bank (ECB) against Greece, when it comes to access Hellas banks to central bank liquidity. Was soon clear that Athens no longer fulfills the conditions for the current exception rule for the deposit of Greek government bonds with the central bank, the ECB should the exception tilt - "even if all aware that such a move would have serious consequences for the Greek financial system," Weidmann said in an interview the exchanges newspaper.
He also pleaded with the approval of the emergency liquidity ELA ("Emergency Liquidity Assistance"), on the Greek banks in the fall as a substitute initially expected to put a strict attitude: "I am of the opinion that we apply strict standards in ELA should. " If the consequences have for financial stability, the policy must act "decisions on whether and how banks should be held individually or through water, governments and parliaments have to make," he said.
The banks of the bankrupt country threatened connected to the drip of the ECB, especially since customers have now withdrawn much capital. The end of 2014, the Institute had borrowed about 56 billion euros at the ECB. In recent days, they had to take ELA funds in claim reported. The Governing Council should deal at its meeting this past Wednesday with Greece - reportedly with both the special rule as well as with ELA loans.
On Wednesday morning, the Greek Finance Minister Yannis Varoufakis had met ECB President Mario Draghi. It was also about suggestions on how Athens could prevent short-term financial bottlenecks with new short-term loans. These plans rejects the ECB from but, as it was called in central bank circles. In Brussels, meanwhile, came Greece's Prime Minister Alexis Tsipras together with the heads of the EU. But there was no results.
Federal Reserve Chairman Weidmann underscored in the interview his resistance to broad government bond purchases by the ECB. He also warned now to ask the wrong course for the monetary union.