NICOSIA/ATHENS (Reuters) – The European Central Bank will resume normal lending to Greek banks only when it sees Athens is complying with its bailout program and is on track to receive a favorable review, ECB President Mario Draghi said on Thursday.
He also made clear the euro zone bank would not raise a limit on Athens’ issuance of short-term debt to help leftist Prime Minister Alexis Tsipras avert a funding crunch, since the EU treaty barred monetary financing of governments.
NICOSIA/FRANKFURT, March 5 (Reuters) – Keen to keep a low
profile over the Greek crisis, the European Central Bank will
focus on improved growth prospects on Thursday and unveil some
but not all the details of its 1 trillion euros-plus bond buying
The ECB, meeting in Cyprus, will keep rates on hold and
probably lift growth forecasts to reflect a string of positive
data surprises, But it could cut inflation projections as it
incorporates the full effect of a dramatic oil price fall,
backing its case to buy 60 billion euros worth of bonds a month
from March to spur inflation.
NICOSIA (Reuters) – Cyprus will stick to its reform pledges, the country’s president told the head of the European Central Bank on Wednesday, promising to implement insolvency laws that he hopes will allow the island to benefit from a trillion-euro-plus programme to buy sovereign bonds.
At a meeting on the Mediterranean island, Nicos Anastasiades personally made the case to ECB President Mario Draghi for Cyprus to take part in the ECB’s quantitative easing programme, a person familiar with the talks told Reuters.
NICOSIA, March 4 (Reuters) – Cyprus is committed to the
terms of its bailout programme, its president said on Wednesday,
stating the island would recover economically this year and post
modest growth in 2016.
In remarks to an audience including members of the European
Central Bank’s decision-making Governing Council and President
Mario Draghi, Nicos Anastasiades said the island was already
showing ‘tangible’ results in its reform programme.
FRANKFURT (Reuters) – European Central Bank policymakers decamp to Cyprus on Wednesday wrestling with the uncomfortable fact that they may hold the keys to Greece’s continued membership of the euro.
With no political appetite for a ‘transfer union’ that could see wealthier countries subsidize Greece, the central bank figures prominently among the main options for staving off an impending funding crunch in Athens.
FRANKFURT (Reuters) – Bank lending in the euro zone fell slightly in January but at a slower pace than a month earlier, suggesting the economy may be turning a corner as consumer morale picks up in the bloc’s largest economies.
European Central Bank President Mario Draghi said late on Wednesday that “all in all, the outlook is more positive than it was a few months ago” in the 19-country euro zone, which has been blighted by recession in the south and falling prices.
LONDON/FRANKFURT (Reuters) – As the banking crisis fades in memory, only to be replaced by a lingering economic slowdown, governments are losing interest in financial reform despite warnings that dangers still lurk.
The shift could mark the beginning of an era reminiscent of the more hands-off approach to regulation preceding the 2008 financial crash, albeit one that follows a raft of reforms – from capping bonuses to boosting capital – that have curbed banks’ freedom to take risks.
FRANKFURT (Reuters) – The head of the European Central Bank welcomed Greece’s reform plans on Tuesday but said he would keep a close watch on ideas that depart from previous pledges, underlining the need for Greece to stick to its commitments.
In a letter to the chairman of the Eurogroup of finance ministers, Mario Draghi said that although some reforms proposed by Athens needed fleshing out, they were enough to justify continuing aid to Greece.
FRANKFURT (Reuters) – The European Central Bank agreed a modest increase in emergency funding for Greek banks on Wednesday, putting pressure on Athens to strike a financing deal with its European partners before its lenders run out of money.
The ECB Governing Council, meeting in Frankfurt, agreed to raise the provision of Emergency Liquidity Assistance (ELA) to 68.3 billion euros ($78 billion), a person familiar with the ECB talks said.
ATHENS/FRANKFURT (Reuters) – Greece will submit a request to the euro zone on Wednesday to extend a “loan agreement” for up to six months but EU paymaster Germany says no such deal is on offer and Athens must stick to the terms of its existing international bailout.
The move, confirmed by an official spokesman, is an attempt by the new leftist-led government of Prime Minister Alexis Tsipras to keep a financial lifeline for an interim period while avoiding tough austerity conditions in the EU/IMF programme.