Market Moving News : Bundesbank's head had misgivings about granting emergency funding to Greece
27 Apr 2015 01:00GMT
EUR/USD - ...... The head of Germany's Bundesbank Jens Weidmann was speaking at a press event with German FinMin Wolfgang Schaeuble after a meeting of EZ FinMins in Riga, he said, "As you know I have concerns about granting emergency liquidity on account of the fact that the banks are not doing everything to improve their liquidity situation."
German FinMin Wolfgang Schaeuble hinted on Sat that Berlin was preparing for a possible Greek default, drawing a parallel with the secrecy of German reunification plans in 1989.
At a briefing with reporters after a tense meeting of EZ FinMins on Greece on Fri, Schaeuble was asked if they were working on a "Plan B" in case negotiations on funding with cash-strapped Athens fail, he answered that you shouldn't ask responsible politicians about alternatives, adding one only need to use one's imagination to envisage what could happen.
He also indicated that if he were to answer in the affirmative that ministers were working on a Plan B -- what to do when Greece runs out of money and cannot pay back its debt -- he could trigger panic.
ECB President Mario Draghi said on Fri Emergency Liquidity Assistance (ELA) would continue to be given to Greek banks as long as they are solvent and have adequate collateral.
27 Apr 2015 01:00GMT
EUR/USD - ...... The head of Germany's Bundesbank Jens Weidmann was speaking at a press event with German FinMin Wolfgang Schaeuble after a meeting of EZ FinMins in Riga, he said, "As you know I have concerns about granting emergency liquidity on account of the fact that the banks are not doing everything to improve their liquidity situation."
German FinMin Wolfgang Schaeuble hinted on Sat that Berlin was preparing for a possible Greek default, drawing a parallel with the secrecy of German reunification plans in 1989.
At a briefing with reporters after a tense meeting of EZ FinMins on Greece on Fri, Schaeuble was asked if they were working on a "Plan B" in case negotiations on funding with cash-strapped Athens fail, he answered that you shouldn't ask responsible politicians about alternatives, adding one only need to use one's imagination to envisage what could happen.
He also indicated that if he were to answer in the affirmative that ministers were working on a Plan B -- what to do when Greece runs out of money and cannot pay back its debt -- he could trigger panic.
ECB President Mario Draghi said on Fri Emergency Liquidity Assistance (ELA) would continue to be given to Greek banks as long as they are solvent and have adequate collateral.
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