Athens, December 17, 2015/Independent Balkan News Agency
By Olga Mavrou
The European Central Bank is examining the possibility of accepting Greek bonds once again in early 2016, though Germans oppose this. ECB considers it a collateral for the liquidity it provides to Greek banks. Although the value of Greek bonds is limited, this development is very important. Thus the Greek banking system will be able to gradually reduce its reliance on the Emergency Liquidity Assistance (ELA) mechanism. Once the bonds are back, Greek banks will escape the high interest rate of ELA, which annually amounts to about 300 million euros, as liquidity by ELA is granted with higher interest rates.
In order for the bonds to be accepted, though, ECB must typically have the sustainability report on the Greek public debt. According to informed sources, the ECB broadly interpreting the rules it has set itself, considers that even the good progress of the evaluation process could be the green light for the accession of Greece in QE (quantitative easing program).