25 February 2015

Reuters: ECB's Draghi - could change Greek debt waiver if reforms hold

In a sometimes heated exchange with lawmakers in the European Parliament, Mario Draghi said the ECB could reverse an earlier decision that makes it harder for Greece and its banks to access finance.

"The ECB had no choice other than lifting the waiver," Draghi told lawmakers, during an appearance in the parliament, raising his voice to overcome heckles as he defended the central bank's treatment of Greece. 

"Having said that, we are ready to reinstate the waiver as soon as the Governing Council will decide that the conditions for a successful completion of the programme are in place."

It appeared from Draghi's remarks, however, that no such move to again accept Greek bonds as security for ECB funding would be immediate.

The ECB lifted the waiver on Feb. 4. 

In its absence, Greek banks are relying on short-term emergency finance. 

On February 24, Draghi expressed reservations about a new list of reforms from Athens, calling on the government, in coded language, not to discourage citizens from paying their debts and taxes.

Draghi made his comments on February 25 to a largely empty chamber although he was challenged repeatedly by Notis Marias, a Greek independent who sits with British Conservative party MEPs in the European Conservatives and Reformists group.

During his appearance, Draghi also said that confidence in Europe was improving after the ECB announced that it would embark on a programme to buy government bonds to buoy the economy from next month.

"We have already seen some positive effects of our measures," he said. "Financial conditions in money and bond markets throughout the euro area have eased further. Lending rates to households and firms have come down considerably."

"All in all the outlook is more positive than it was a few months ago."

Full article on Reuters

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