mercredi 15 avril 2015
Greece casts shadow as ECB money printing buoys euro zone
Posted on 02:22 by nice news
European Central Bank policymakers have sanctioned further emergency funding for Greece's banks, a banking source said, amid clear signs that the wider euro zone economy is picking up.
With an ECB survey showing banks expecting the strongest demand for company loans in over a decade, its President Mario Draghi will be able to claim an early success for the 60 billion euros-a-month money printing scheme it launched last month.
The ECB's borrowing rates are all but guaranteed to be held at record lows ECB01 by policymakers meeting on Wednesday, but continued wrangling between Greece and the euro zone over reforms for aid is casting uncertainty over the 19-country currency bloc.
Nonetheless the 1 trillion-euro-plus money printing scheme to buy chiefly government bonds is underpinning confidence and some predict Draghi will underscore his commitment to quantitative easing on Wednesday.
"We expect Draghi will confirm that the full implementation of the (QE) program will be needed despite the recent strong data and that they are not even pondering any changes," said Dirk Schumacher, an economist at Goldman Sachs.
Time is running out, however, for Athens to improve a package of reforms required for the release of euro zone loans that it requires to stay afloat.
Draghi may address problems in Greece after the ECB's decision-making Governing Council extended the limit on emergency liquidity that can be drawn by Greek banks. This has been rising as savers, worried about the country's prospects, withdraw deposits.
The European Central Bank raised the cap on emergency liquidity assistance (ELA) that Greek banks can draw from the country's central bank by 800 million euros ($852 million), taking the ELA ceiling to 74 billion euros, a banking source said on Tuesday.
Were Greece, first bailed out in 2010 and again two years later, ultimately to tumble out of the euro, it would deal a blow
With an ECB survey showing banks expecting the strongest demand for company loans in over a decade, its President Mario Draghi will be able to claim an early success for the 60 billion euros-a-month money printing scheme it launched last month.
The ECB's borrowing rates are all but guaranteed to be held at record lows ECB01 by policymakers meeting on Wednesday, but continued wrangling between Greece and the euro zone over reforms for aid is casting uncertainty over the 19-country currency bloc.
Nonetheless the 1 trillion-euro-plus money printing scheme to buy chiefly government bonds is underpinning confidence and some predict Draghi will underscore his commitment to quantitative easing on Wednesday.
"We expect Draghi will confirm that the full implementation of the (QE) program will be needed despite the recent strong data and that they are not even pondering any changes," said Dirk Schumacher, an economist at Goldman Sachs.
Time is running out, however, for Athens to improve a package of reforms required for the release of euro zone loans that it requires to stay afloat.
Draghi may address problems in Greece after the ECB's decision-making Governing Council extended the limit on emergency liquidity that can be drawn by Greek banks. This has been rising as savers, worried about the country's prospects, withdraw deposits.
The European Central Bank raised the cap on emergency liquidity assistance (ELA) that Greek banks can draw from the country's central bank by 800 million euros ($852 million), taking the ELA ceiling to 74 billion euros, a banking source said on Tuesday.
Were Greece, first bailed out in 2010 and again two years later, ultimately to tumble out of the euro, it would deal a blow
Greece casts shadow as ECB money printing buoys euro zone
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