Mario Draghi replied to the Economic Affair committee as it was publicly accused by MEPs. «The are rules, the Hellenic government has to repay loans»
by Emanuele Bonini
The ECB is not blackmailing Greece, said Mario Draghi on Monday in his monetary dialogue with the European Parliament. The president of the European Central Bank rejected the Portuguese MEP Marisa Matias' accusations simply recalling what the situation is, and the situation is the Greek exposure has more than doubled since December. «Are we blackmailing Greece? That’s a bit rich to say. The ECB has 104 billion euro exposure to Greece. That’s 65% of Greek GDP and the highest exposure in the eurozone». What the Frankfurt-based bank is doing is securing loans. «We haven’t created any rule for Greece, rules were in place and they’ve been applied». Here we are: Greece received money and the country has to give them back. No way. «The Greek government should commit to fully honour its debt obligations to all its creditors», was pointed out by Mario Draghi, who showed to be ready in supporting the Hellenic republic. MEPs were told the European Central Bank could remove a waiver that allowed Greek banks to use the country’s junk-rated bonds as collateral for loans, but only «when conditions are met». The problem is actually conditions are not in place, and responsibilities lie in Athens. Alexis Tsipras' government hasn't a shared trust within the Eurozone, and in this sense there is a lot to do. «Process needs to be put in place to restore dialogue between Greek authorities and three institutions» (the European Commission, the European Central Bank and the International Monetary Fund). Anyway the emergency liquidity provided by the ECB to Greece «should not be used to fund the government», since these resources are thought «to shore up Greek banks»
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| Mario Draghi |
The ECB is not blackmailing Greece, said Mario Draghi on Monday in his monetary dialogue with the European Parliament. The president of the European Central Bank rejected the Portuguese MEP Marisa Matias' accusations simply recalling what the situation is, and the situation is the Greek exposure has more than doubled since December. «Are we blackmailing Greece? That’s a bit rich to say. The ECB has 104 billion euro exposure to Greece. That’s 65% of Greek GDP and the highest exposure in the eurozone». What the Frankfurt-based bank is doing is securing loans. «We haven’t created any rule for Greece, rules were in place and they’ve been applied». Here we are: Greece received money and the country has to give them back. No way. «The Greek government should commit to fully honour its debt obligations to all its creditors», was pointed out by Mario Draghi, who showed to be ready in supporting the Hellenic republic. MEPs were told the European Central Bank could remove a waiver that allowed Greek banks to use the country’s junk-rated bonds as collateral for loans, but only «when conditions are met». The problem is actually conditions are not in place, and responsibilities lie in Athens. Alexis Tsipras' government hasn't a shared trust within the Eurozone, and in this sense there is a lot to do. «Process needs to be put in place to restore dialogue between Greek authorities and three institutions» (the European Commission, the European Central Bank and the International Monetary Fund). Anyway the emergency liquidity provided by the ECB to Greece «should not be used to fund the government», since these resources are thought «to shore up Greek banks»
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