18 Feb 2015
Germany against emergency funding to Greece through ELA’s ? – TradeTheNews
FXStreet (Barcelona) - The TradeTheNews Team comments that rumours have been going strong that Bundesbank’s Weidman is likely against offering Greece further emergency funding through ELA’s.
Key Quotes
“Going into the non-monetary meeting of the ECB, financial press circulated rumors that Bundesbank's Weidmann will push against allowing any extra emergency lending to Greek banks via the ELA program. That facility was recently expanded to €65B from €60B, however the report noted that rising outflows late last week have already drained much of that liquidity from Greek banks.”
“Weidmann's agenda will certainly be perceived as having political undertones, with the two sides remaining conflicted on whether the Greeks' next move will be the extension of the bailout demanded by Berlin, a "bridge loan" program favored by Athens, or (most likely) fall somewhere in the middle.”
“EUR/USD was confined to a 20pip range in the Asia session, trading just above the $1.14 handle.”
Key Quotes
“Going into the non-monetary meeting of the ECB, financial press circulated rumors that Bundesbank's Weidmann will push against allowing any extra emergency lending to Greek banks via the ELA program. That facility was recently expanded to €65B from €60B, however the report noted that rising outflows late last week have already drained much of that liquidity from Greek banks.”
“Weidmann's agenda will certainly be perceived as having political undertones, with the two sides remaining conflicted on whether the Greeks' next move will be the extension of the bailout demanded by Berlin, a "bridge loan" program favored by Athens, or (most likely) fall somewhere in the middle.”
“EUR/USD was confined to a 20pip range in the Asia session, trading just above the $1.14 handle.”