Greek banks are in consultation with the Bank of Greece about the plans of aid withdrawal from the European Central Bank.
Following the European Commission’s approval of the extension of the state guarantees to Greek banks for €30b, the domestic banking sector enters the final phase of preparing a draft to be submitted to the ECB in order to obtain additional guarantees.
The draft refers only to the aid withdrawal for 2011-2012 period and is expected to be submitted on April 15.
According to banking sources, the drafts may be not followed by requests for additional guarantees, as ECB may not approve as sustainable the drafts or even banks may not use any additional guarantees.
The same sources indicate that the use of the additional guarantees packages will be made if:
a) the liquidity of Greek banks worsens further with a new large decline in deposits
b) the country’s debt ratings get further downgraded
Noted that the state guarantees that have received by banks so far amounted to €63b.
At the same time, banks are expected on April 15 to send to the Finance Minister evidence for the proper use of previous guarantees they received.
The relevant responsive letters will refer to the amount of loans provided to the real economy in 2010 with the help of government guarantees, and to a budget regarding the amount of 2011 loans.
Following the European Commission’s approval of the extension of the state guarantees to Greek banks for €30b, the domestic banking sector enters the final phase of preparing a draft to be submitted to the ECB in order to obtain additional guarantees.
The draft refers only to the aid withdrawal for 2011-2012 period and is expected to be submitted on April 15.
According to banking sources, the drafts may be not followed by requests for additional guarantees, as ECB may not approve as sustainable the drafts or even banks may not use any additional guarantees.
The same sources indicate that the use of the additional guarantees packages will be made if:
a) the liquidity of Greek banks worsens further with a new large decline in deposits
b) the country’s debt ratings get further downgraded
Noted that the state guarantees that have received by banks so far amounted to €63b.
At the same time, banks are expected on April 15 to send to the Finance Minister evidence for the proper use of previous guarantees they received.
The relevant responsive letters will refer to the amount of loans provided to the real economy in 2010 with the help of government guarantees, and to a budget regarding the amount of 2011 loans.
