Reuters reports that The European Central Bank funding to Greek
banks fell by €49.67bn in July from a month earlier to €23.99bn. Conversely,
emergency liquidity assistance from the Greek central bank increased by €44.37bn
to €106.31bn. Greek banks lost wholesale market access in the wake of the
country's debt crisis, becoming dependant on the European Central Bank and the
national central bank for liquidity. This is what Marc Ostwald of Monument
Securities thought of those figures: The figures below mark a seismic shift
away from the ECB to the Greek central bank, which could be interpreted as the
ECB sensibly taking a hard line given the array of risks surrounding the new
government's fiscal and structural reform policies, and indeed the Troika visit.
... But that sort of hard line is rather more suggestive of Herr
Weidmann and the Bundesbank 'wearing the trousers' at the ECB than Signor
Draghi, and for some Greece sceptics may even be constructed as a signal that
Greece is one step closer to the exit, given the shift in risk (though we would
be the first to admit that EUR 24 Bln is still a high level of risk, even if it
has been reduced to what Signor Draghi might describe as an "adequate" level),
and of course has no bearing on other ECB bond buying plans........
Access Investments-Building Awareness - European Union-ROMANIA
Wednesday, August 15, 2012
Reuters reports that The European Central Bank funding to Greek
banks fell by €49.67bn in July from a month earlier to €23.99bn. Conversely,
emergency liquidity assistance from the Greek central bank increased by €44.37bn
to €106.31bn. Greek banks lost wholesale market access in the wake of the
country's debt crisis, becoming dependant on the European Central Bank and the
national central bank for liquidity. This is what Marc Ostwald of Monument
Securities thought of those figures: The figures below mark a seismic shift
away from the ECB to the Greek central bank, which could be interpreted as the
ECB sensibly taking a hard line given the array of risks surrounding the new
government's fiscal and structural reform policies, and indeed the Troika visit.
... But that sort of hard line is rather more suggestive of Herr
Weidmann and the Bundesbank 'wearing the trousers' at the ECB than Signor
Draghi, and for some Greece sceptics may even be constructed as a signal that
Greece is one step closer to the exit, given the shift in risk (though we would
be the first to admit that EUR 24 Bln is still a high level of risk, even if it
has been reduced to what Signor Draghi might describe as an "adequate" level),
and of course has no bearing on other ECB bond buying plans........
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Spanish banks borrowed a record €402bn (£316bn) from the European Central Bank in July, leaving them as far as ever from returning to capital markets, and heaping further pressure on Madrid as it tries to avert a full sovereign bailout.
The banks borrowed 10% more than the €365bn they tapped in June, Tuesday's data from the Bank of Spain showed. Spiralling debt costs and balance sheets ravaged by a domestic property bubble that collapsed in 2008 have shut most domestic banks out of the bond markets.
The banks' use of the ECB facility has increased sharply this year, rising from €161bn in January, and the sector was propped up in July with the promise of a European rescue package – which it has yet to tap – worth up to €100bn.
The pattern is similar if less acute in Italy – like Spain at the sharp end of the eurozone debt crisis – where banks held €283bn in ECB funds in July compared with €281bn in June, Bank of Italy data showed last week.
In Spain, only heavyweights with big operations abroad such as Santander and BBVA continue to have few problems raising funding from the market.
Stock markets, however, were cheered by the news as the contraction was smaller than expected and share prices rose across Europe. The FTSE 100 finished 32 points higher at 5864, while the DAX closed 0.8% higher.
The European commission vice-president, Olli Rehn, told CNBC that the EU and the European Central Bank would take action "once certain conditions are met". Rehn added that the euro was "irreversible".
In Germany, there was some relief that the economy grew by 0.3%. Analysts, though, fear that Europe's powerhouse could slide into recession soon.
Now that the politicos are all coming back from their hard(ly) earned holidays, watch the "markets" come back to the realisation that they are all hog-tied by their electorates with one eye on the next election to do anything to really "fix" the Euro.
then they'll all tank - all over again. fickle and dumb are two words that spring to mind where the "markets" are concerned!
Greek prime minister Antonis Samaras will formally ask for the terms of the county's aid package to be relaxed next week, the Financial Times is reporting this morning.
Well, that IS a shocker!
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