[civil] "Greece moves closer to eurozone exit after delaying €300m repayment to IMF "

[C0ckney]

oh, having just looked at the bbc website, it appears that the ECB have decided to maintain the limits agreed on friday.

The European Central Bank says it will maintain its emergency funding of Greek banks at the level agreed on Friday.

The ECB said that it stood ready to review the decision on its Emergency Liquidity Assistance (ELA) and would work closely with the Bank of Greece.

BBC economics editor Robert Peston says the ECB is not providing any additional aid to Greece, which will lead to huge pressure for capital controls.

Greek banks depend on ELA, and cutting it could push Greece out of the euro.

An ECB spokesman told the BBC: "Greece still has access to the ELA."

In the ECB statement, Bank of Greece Governor Yannis Stournaras said: "The Bank of Greece, as a member of the eurosystem, will take all measures necessary to ensure financial stability for Greek citizens in these difficult circumstances."

[PLATO]

The BBC seems to have conflicting reports coming in today and has changed its headline back to no support from the ECB. Looks like there may be some serious disagreement at the ECB on how to handle this or maybe the Germans just set their foot down?

[Dauphin]

The reports aren't conflicting as much as the BBC don't seem to know what is happening. Both statements are consistent. The funding is there, not being increased or pulled. I think the Beeb misinterpreted the implication of that given its not clear how close to the ceiling Greece is. If it reached the ceiling already, it is tantamount to no further support. From my reading anyway.

[Dinner]

The BBC seems to have conflicting reports coming in today and has changed its headline back to no support from the ECB. Looks like there may be some serious disagreement at the ECB on how to handle this or maybe the Germans just set their foot down?

That appears to be so. Some reports are saying legally the ECB is not supposed to lend to banks that are in solvan't nor without collateral yet the Greek banks have no collateral and will almost certainly all go bust. Yet the other side is saying ignore the ECB rules/laws because the idiots in charge of Greece want to blame every thing on foreigners instead of the governments own incompetence.

They face default in two days but suddenly announce they can't approve a deal without a national referendum which could take several months? It is pretty obvious they want to force a default but are desperate to deflect the blame.

[pchang]

The Greek banks have plenty of collateral. The problem is that most of it is in the form of deferred tax credits from the Greek government. It looks like Greek bankers will all get a nice holiday starting on Monday. Same with stock traders. I wonder if Paiktis managed to get all his money out of the bank in time.

[Dinner]

He probably doesn't have much but I hear some nationalists are standing outside banks berating people for withdrawing their money. Frankly, they are fools if they don't. A Euro will be worth at least twice what a new drackma is worth so once they stamp the old Euro bills as new drackmas they will lose half of their value. The smart ones set up accounts in other EU countries months ago and electronically transferred it out of country.

[Dinner]

http://money.cnn.com/2015/06/28/news/economy/greece-banks-ecb/index.html

To late, already happened. Banks are closed until further notice and capital controls are now in place.

[Feckan Eejit]

ah just like dear old Ireland

[regexcellent]

Greece is defaulting.

http://www.wsj.com/articles/european-union-prepares-for-potential-fallout-from-greek-bank-shutdown-1435573213

[N35t0r]

http://money.cnn.com/2015/06/28/news...ecb/index.html

To late, already happened. Banks are closed until further notice and capital controls are now in place.

That sounds familiar. FWIW, over here it was instituted after several years of heedng the IMF, and taking all the 'austerity' measures they recommended.

The result wasn't nice.

[Dinner]

Nonsense. Yes, austarity hurts but the main reason they didn't recover while all the other piigs did is because they never made the regulatory reforms needed to make their economy competitive again nor did they complete the privitizations which would have raised capital to pay down the debt.

The Greeks are to blame for their own problems.

[C0ckney]

[N35t0r]

Nonsense. Yes, austarity hurts but the main reason they didn't recover while all the other piigs did is because they never made the regulatory reforms needed to make their economy competitive again nor did they complete the privitizations which would have raised capital to pay down the debt.

The Greeks are to blame for their own problems.

Dude, read up. What happened here is most definitely not nonsense.

[Sir Og]

That sounds familiar. FWIW, over here it was instituted after several years of heedng the IMF, and taking all the 'austerity' measures they recommended.

The result wasn't nice.

Argentina's situation was indeed very similar. They also lacked the ability to devalue and acheive competitevnes in a more natural way.

[N35t0r]

We did end up breaking parity with the dollar, and it was what helped end the crisis (that, and ballooning commodity prices (esp. soybean) led to several years of important economic growth).