Forex Flash: Bundesbank’s Weidmann blasts new Greek debt deal – Nomura

FXstreet.com (Barcelona) - The Nomura economics team have highlighted an interview with the Bundesbank´s Weidmann in which he criticised the fact that Greece would meet part of its funding needs through auctions of short term T-Bills, saying this paper would be mainly bought by local banks, who in turn were largely financed through central bank means, complicating the ban on direct state financing.

They note that Mr Weidmann repeated his position that “if we do need a future debt write down, then it should only be considered if Greece has fulfilled its reform path.”

Moving onto banking union, Weidmann is reported to have called for a change to the European constitution in order to avoid any conflict of interest between the ECB´s monetary policy and planned new super visionary duties. He is also reported to have said that while the German property market is strained in some regions, property prices have increased significantly in markets such as Frankfurt or Munich, with low interest rates driving a real estate boom.

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