Greece Willing To Do “Whatever It Can” To Reach Deal After Greek Liquidity Situation Deteriorates Rapidly1.
a) ELA-k funtzionatu du, baina…
“… the ECB has boosted the Greek ELA availability from €59.5 to €65, suggesting the bank run had accelerated and bank funding was on the verge of evaporating again.”
“Senior bank officials have told Kathimerini that almost all the liquidity available to Greece (59.5 billion euros) has been absorbed and that banks’ total dependence on the Eurosystem amounts to 90 billion. The rapid deterioration in liquidity conditions has been attributed to the uncertainty that arose when the snap general elections were called as well as the new government’s inability to reach a swift agreement with the country’s creditors. Following the 4-billion-euro outflow in December and 12 billion in January, bank deposits have already shrunk by another 3 billion this month.”
b) EBZ-ren ‘logika’
As for the logic behind the ECB’s decision to first yank Greek collateral and then to trickle it to Greece on an ad hoc basis, it is quite simple: keep Greece on a short leash and remind it that should it try to pull away, all the funding will disappear.”
“Frankfurt’s decision shows its intention to place stricter controls on the supply of cash to Greek banks in the wake of Wednesday’s inconclusive Eurogroup meeting. “The more time that passes without an agreement with the eurozone, the more the ECB will restrict the limits by supplying liquidity that only covers a few days’ needs, and as the February 28 deadline approaches [when the bailout extension expires], the risk of an ‘accident’ will grow,” a bank official noted.”
c) Greziako ‘finantza laguntza’ (‘bailout’) dago atzean…
And of course, while “The ECB council is to convene again on Wednesday to examine another increase to the Greek limit” everything depends on the outcome of Monday’s Eurogroup meeting.
Which brings us back precisely to the negotiation at the heart of the Greek drama, where as we reported yesterday, it was first reported that Germany is caving in its strict demands toward Greece.
“Greece and Germany are pursuing a deal on the conditions required to continue the Greek bailout as each side signals a willingness to compromise, according to government officials taking part in the talks.”
d) Alemaniaren baldintzak
“Germany won’t insist that all elements of Greece’s current aid program continue, said two officials in Berlin. As long as the program is prolonged, they said, Germany would be open to talking about the size of Greece’s budget surplus requirement and conditions to sell off government assets.”
e) Greziaren jarrera…
“For its part, Greece is prepared to commit to a primary budget surplus, as long as it’s lower than the current 4 percent of gross domestic product, according to Greek government officials. Prime Minister Alexis Tsipras’s coalition also might be willing to compromise on privatizations, one of the officials said.”
Testuingurua: “… what it boils down to is an extension of the Greek bailout program.”
Greziako bankuen likidezia oso baxua da: “… now that Greek bank liquidity is precariously low,”
Zenbat onartuko du Greziak? “Greece appears ready to accept whatever deal it can.”
Beraz, “Greece will make every effort to reach an agreement with its euro zone partners at Monday’s meeting of euro zone finance ministers on how to transition to a new support program, its government spokesman said on Friday.”
Zein mailataraino iritsiko da Grezia, ‘programa berria’ onartzearren?
The punchline: “We will do whatever we can so that a deal is found on Monday…”
f) Beste hitz batzuez esanda…
In other words, despite all the posturing, all the harsh words, all the rhetoric, money once again walks. And it is precisely the threat of the money walking away that appears to have ended the Tsipras goverment’s will to continue pushing hard on its hard-line stance, leading to a government that is now willing to do “whatever we can.”
g) Eta, hain zuzen ere, hori berori musika da
Which is music to the ears of Merkel and the ECB, as the can appears to have been kicked at least until the next Greek election after which nothing much will change either.