We are facing another deadline for the EU and Greece to make some serious advance on their negotiations or continue living in this state of insecurity. ECB will discuss today what to do with the Greek’s access to the Emergency liquidity assistance program. As Greek’s sovereign bonds have `junk` rating, the ECB approved a special policy which allowed country’s landers to use subprime collateral.
This policy however has been cancelled and the ELA was the only source of funding for Greece. This program however was temporary as there is a €65B cap, which may easily be reached if Greeks start pulling money from the country’s banking system.
All this creates a lot of pressure on the Euro which may not be able to get the needed fundamental support and start recovering last year’s losses.
by Transfermate
