It must be quite busy at the ECB’s headquarters in Frankfurt these days as not only did the ECB kick off its first (official) round of Quantitative Easing, it’s still front-running on Greece’s rescue. In its Q&A session with journalists, ECB president Mario Draghi confirmed the ECB has stepped up its efforts to keep Greece in the Eurozone, as it has roughly doubled its lending in just 6-8 weeks time. This means that since Syriza has won the Greek elections in January, the ECB had to step in to save the Greek economy and financial system from collapsing.
This seems to show the ECB is willing to go far, very far, to keep the Eurozone united (and Greece in) as the ECB’s lending to the country is now at a stunning 68% of the GDP. On top of that, Greece wanted to be included in the ECB’s Quantitative Easing program, but Draghi has now explicitly excluded the purchase of Greek bonds as long as the threshold of 33% has been breached and the ECB will NOT be allowed to purchase Greek bonds before July/August.
The Greek situation remains extremely dire, as the ECB confessed it once again had to increase the allowed amount of the Emergency Lending Assistance to Greece by another half billion Euros. The jury’s still out on Cyprus as well as the country needs to get the thumbs up from the Troika in its fifth review.
Full article: Shocking! The ECB Has Now Doubled Its Lending To Greece (Zero Hedge)