It will increase further 900 million euros per week, reaching 89,900 million. It has also opened the door to the purchase of Greek debt through QE.
The ECB president has started his usual press conference after the meeting types indicated that its program of asset purchases, known as quantitative easing or QE, is performed without problems and “will continue until the end of 2016″.
After Draghi’s speech, the media have bombarded ECB President literally questions about Greece.
And the Italian has not been hard.
Increase ELA Greece in 900 million weekly
In his first response it has been said that today just have increased emergency loans known as ELA to Greece, from 89,000 million which remained earlier this week (and carried from June 28) to 89,900 million.
That is, it has increased by 900 million a week to finance the “solvents that offer collateral” banks.
Draghi says it has increased the ELA in the amount you He has asked the Bank of Greece, but that is a decision that has not taken “unanimously”.
However, this does not imply that the yard hanging over Greek banks get up tomorrow. Super Mario, as he is known in financial circles, has clarified that the decision to reopen tomorrow the banks should take the Greek government.
It also has emphasized that a situation like the corralito protects all depositors.
On the other hand, the central banker has said he sees “necessary restructuring of the Greek debt” and has opened the door to the purchase of Greek debt through the QE when passing the third Greek bailout, when an initial assessment showing that the Greek government is complying with the third rescue program is made
.
It has also indicated that exposure of the Eurosystem to Greece is 130,000 million, while deposits in the Hellenic country totaling 120,000 million
When asked about a possible ‘Grexit’ ECB President has been very clear. “We have always operated under the assumption that Greece is a member Eurozone “.
And has acknowledged that monetary union is “fragile and vulnerable”.
Draghi acknowledged at the press conference that Greece is sure to pay what you owe, both 3,500 million next Monday, as payments to the IMF.
Inflation
Draghi pointed out that at present the euro area experiencing a sustained rate of inflation adjustment.
An inflation that the central banker stated that “is expected to remain low and to increase ahead of year end, due to the evolution of oil and the depreciation of the euro”.
“We expect inflation to pick up in 2016 and 2017,” he said.
Therefore, “our actions are contributing to economic growth” and “have contained the risks.”
This meant somehow that the Greek crisis has had no impact on the economy.
In the future will continue to monitor the involvement of financial markets.
And if the situation will change, “will use all possible instruments under its mandate,” he repeated today for the umpteenth time .
The monetary measures, emphasizes Draghi, will support the economic recovery.
The Italian banker has also called structural Governments should be implemented swiftly reforms.
The ECB president said that “financial conditions are accommodative” and that ” downside risks to growth are contained. “
Ten months with interest rates at 0.05 percent
Apart from these issues, the ECB has kept interest rates the euro zone at a record low of 0.05%, a move that is already more than usual in the markets.
This monetary institution has been taking the same measure of leaving at that level since the September 10, 2014 the lowered by 10 basis points.
The issuing bank has also chosen to leave the deposit facility unchanged at -0.2 percent.
fondos@eleconomista.com.mx
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