The European Central Bank will continue to provide liquidity to Greek banks for as long as they are solvent, ECB President Mario Draghi stated today.
Speaking at a press conference in Frankfurt after the decision to keep the euro interest rate unchanged, he noted that there is no specific deadline regarding the financing of the Greek banks via the ELA, indicating that decisions are based on the prevailing conditions.
The extent to which additional emergency liquidity assistance will be provided to Greek banks "is entirely in the hands of the Greek government"
“There was no end date for ELA to Greek banks. It's entirely depending on the conditions that will be in place" after negotiations between Greece and euro zone peers”, he added.
He stressed that ECB’s total exposure to Greece stands at €110bn.
Program proceeds
“The implementation of our asset purchase programmes is proceeding smoothly, with volumes in line with the announced figure of €60 billion of securities per month. In addition, there is clear evidence that the monetary policy measures we have put in place are effective”.
“Purchases are intended to run until the end of September 2016 and, in any case, until we see a sustained adjustment in the path of inflation that is consistent with our aim of achieving inflation rates below, but close to, 2% over the medium term”, he added.
According to Mr. Draghi, the latest economic indicators, including survey data up to March, suggest that the euro area economy has gained further momentum since the end of 2014. “Looking ahead, we expect the economic recovery to broaden and strengthen gradually”, he said.
As for the fall in the euro rate, Mr. Draghi said that this is expected to contribute to exports.
It is noted that the press conference was disputed by a protester, who jumped on the table in front of him shouting “End the ECB dictatorship” and throwing confetti.
Speaking at a press conference in Frankfurt after the decision to keep the euro interest rate unchanged, he noted that there is no specific deadline regarding the financing of the Greek banks via the ELA, indicating that decisions are based on the prevailing conditions.
The extent to which additional emergency liquidity assistance will be provided to Greek banks "is entirely in the hands of the Greek government"
“There was no end date for ELA to Greek banks. It's entirely depending on the conditions that will be in place" after negotiations between Greece and euro zone peers”, he added.
He stressed that ECB’s total exposure to Greece stands at €110bn.
Program proceeds
“The implementation of our asset purchase programmes is proceeding smoothly, with volumes in line with the announced figure of €60 billion of securities per month. In addition, there is clear evidence that the monetary policy measures we have put in place are effective”.
“Purchases are intended to run until the end of September 2016 and, in any case, until we see a sustained adjustment in the path of inflation that is consistent with our aim of achieving inflation rates below, but close to, 2% over the medium term”, he added.
According to Mr. Draghi, the latest economic indicators, including survey data up to March, suggest that the euro area economy has gained further momentum since the end of 2014. “Looking ahead, we expect the economic recovery to broaden and strengthen gradually”, he said.
As for the fall in the euro rate, Mr. Draghi said that this is expected to contribute to exports.
It is noted that the press conference was disputed by a protester, who jumped on the table in front of him shouting “End the ECB dictatorship” and throwing confetti.
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