European
Central Bank reiterated that a restructuring of Greek debt they hold
them legally impossible, according to statements made by Joerg Asmussen,
a member of management, the newspaper Bild am Sonntag."We can not extend the time limits / of Greek bonds / or reduce interest rates. And
one and the other would return to Athens deletion of part of the debt
and would lead to direct financing of the Greek State. The ECB has no legal right, "Asmussen said Sunday newspaper, quoted by AFP.
Senior official of the ECB, which has already made similar statements at the end of September, also recalled that getting the next tranche of bailout last of Athens, as at be paid in November, there would be "no effort".
Government of Antonis Samaras is still awaiting the report troika - the EU, IMF and ECB - to take or not for this new tranche of aid to Athens.
Asmussen said on the other newspaper Die Welt as a restructuring expense ECB is "not possible", signaling a potential need for additional financing for Greece from the eurozone members.
He also said "clearly" to keep Athens in the euro zone, but reiterated that "the key is in the hands of the Greek state."
Senior official of the ECB, which has already made similar statements at the end of September, also recalled that getting the next tranche of bailout last of Athens, as at be paid in November, there would be "no effort".
Government of Antonis Samaras is still awaiting the report troika - the EU, IMF and ECB - to take or not for this new tranche of aid to Athens.
Asmussen said on the other newspaper Die Welt as a restructuring expense ECB is "not possible", signaling a potential need for additional financing for Greece from the eurozone members.
He also said "clearly" to keep Athens in the euro zone, but reiterated that "the key is in the hands of the Greek state."
"The
condition of payment of the next tranche for Greece is to offset the
budget deficit for 2013-2014 and implement comprehensive structural
reforms," he insisted.
Samaras: The Greek State has cash only to end of NovemberGreek Prime Minister Antonis Samaras said Friday that without the next tranche of international aid, Greece can no longer do after November and suggested the ECB could support the Greek State by rolling the Greek bond that matures Reuters.
"The key is liquidity. Therefore the next installment credit is so important for us, "said Samaras to the German magazine" Handelsblatt ".
Asked how long it might do without help Greece, Greek official said: "By the end of November, then we will not have cash."
ECB could be helpful accepting low interest rates for Greek bonds they hold "or could approve a roll these bonds as mature," said Greek Prime.
"I-I could also imagine a recapitalization of Greek banks as considered for Spain, where it will be included in the debt of the country but will be made directly via ESM (European Financial Stability Fund). It would be a great help for Greece, "said Samaras.
Greece resumed talks with international creditors Monday (EU, ECB and IMF), aiming to release the next tranche of loan of 31.5 billion euros in exchange for new austerity measures that provide savings of 13.5 billion euros.
Samaras: The Greek State has cash only to end of NovemberGreek Prime Minister Antonis Samaras said Friday that without the next tranche of international aid, Greece can no longer do after November and suggested the ECB could support the Greek State by rolling the Greek bond that matures Reuters.
"The key is liquidity. Therefore the next installment credit is so important for us, "said Samaras to the German magazine" Handelsblatt ".
Asked how long it might do without help Greece, Greek official said: "By the end of November, then we will not have cash."
ECB could be helpful accepting low interest rates for Greek bonds they hold "or could approve a roll these bonds as mature," said Greek Prime.
"I-I could also imagine a recapitalization of Greek banks as considered for Spain, where it will be included in the debt of the country but will be made directly via ESM (European Financial Stability Fund). It would be a great help for Greece, "said Samaras.
Greece resumed talks with international creditors Monday (EU, ECB and IMF), aiming to release the next tranche of loan of 31.5 billion euros in exchange for new austerity measures that provide savings of 13.5 billion euros.
According
to a source in the Ministry of Finance, austerity measures include
cutting about 7 billion of pension, the wages of certain categories of
state (judges, academics, police and fire) and social benefits.
Savings of nearly 3.5 billion will be achieved through "structural reforms" in the administration, especially the early retirement of about 15,000 officers. Finally, tax revenues should increase by 3 billion over the next two years.
Unlimited ECB bond purchases for a limited time
The European Central Bank plans to buy massive government bonds for a period of one to two months as soon as it launches "Outright Monetary Transactions" but then suspend purchases to assess the impact of WTO, a source told Reuters the ECB.
So far, details of how to make the new ECB bond purchase program was vague. ECB chief Mario Draghi said on Thursday that the European Central Bank is ready to buy bonds of euro zone countries if they agree to accept fiscal rehabilitation programs. New bond purchasing program called "Outright Monetary Transactions" (UNWTO), will allow us to provide, in appropriate circumstances, effective protection to avoid turbulence scenarios that could potentially severe price stability in the euro area, "said Mario Draghi.
Savings of nearly 3.5 billion will be achieved through "structural reforms" in the administration, especially the early retirement of about 15,000 officers. Finally, tax revenues should increase by 3 billion over the next two years.
Unlimited ECB bond purchases for a limited time
The European Central Bank plans to buy massive government bonds for a period of one to two months as soon as it launches "Outright Monetary Transactions" but then suspend purchases to assess the impact of WTO, a source told Reuters the ECB.
So far, details of how to make the new ECB bond purchase program was vague. ECB chief Mario Draghi said on Thursday that the European Central Bank is ready to buy bonds of euro zone countries if they agree to accept fiscal rehabilitation programs. New bond purchasing program called "Outright Monetary Transactions" (UNWTO), will allow us to provide, in appropriate circumstances, effective protection to avoid turbulence scenarios that could potentially severe price stability in the euro area, "said Mario Draghi.
Economists
are wondering what could be the ECB's exit strategy, or in other words,
how will end once OMT program started to buy sovereign bonds of euro
area countries facing financial problems. Possible
answer is that the ECB will suspend purchases on a regular basis, for a
period of one to two months to assess the impact of WTO.
During this period, the inspectors EU, ECB and IMF will assess whether a country meets the conditions to benefit from WTO. A financial aid program is a precondition for the ECB to intervene in the secondary market. Once a country accepts a package of financial assistance, the ECB will begin sovereign bond purchases for a period of one to two months and then stop to appreciate the impact of the program and then decide whether to continue the acquisition.
ECB representatives have not commented on the information.
Last month, the Governing Council created a new bond purchasing program, OMT, which will replace the previous program and help the ECB to buy unlimited bonds with maturity between one and three years.
Countries that want the ECB to buy their bonds will have to accept certain conditions that will be partially monitored by the IMF, Mario Draghi said, adding that the acquisition will not result in printing additional money for the 17 euro area countries. Draghi assured that the ECB will only help states accept and implement strict conditions and euro zone rescue fund will purchase also bonds.
Spain could be the first eurozone country to benefit from the new program of the ECB, although not yet officially made for a complete package of financial assistance.
During this period, the inspectors EU, ECB and IMF will assess whether a country meets the conditions to benefit from WTO. A financial aid program is a precondition for the ECB to intervene in the secondary market. Once a country accepts a package of financial assistance, the ECB will begin sovereign bond purchases for a period of one to two months and then stop to appreciate the impact of the program and then decide whether to continue the acquisition.
ECB representatives have not commented on the information.
Last month, the Governing Council created a new bond purchasing program, OMT, which will replace the previous program and help the ECB to buy unlimited bonds with maturity between one and three years.
Countries that want the ECB to buy their bonds will have to accept certain conditions that will be partially monitored by the IMF, Mario Draghi said, adding that the acquisition will not result in printing additional money for the 17 euro area countries. Draghi assured that the ECB will only help states accept and implement strict conditions and euro zone rescue fund will purchase also bonds.
Spain could be the first eurozone country to benefit from the new program of the ECB, although not yet officially made for a complete package of financial assistance.
