Debt crisis

ECB accepts Greek bonds

The time of the ELA-emergency loans for Greek banks is over. Soon you can get back cheap ECB money.

From next Wednesday it will accept Greek government bonds as loan collateral, said the European Central Bank (ECB) on Wednesday evening in Frankfurt.

Because the Greek papers to junk Status, so as a highly risky apply, in need of the ECB for this step, an exception. It had given once before, but was
repealed, as the left Alliance Syriza took over the business of the government. Now the exception will be set back in the Bank.

The governing Council will acknowledge the reform efforts of the country and expect it to fulfill the requirements. A recording of Greece in the current trillion-heavy bond-buying program will be decided at a later date.

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An important step towards the re-establishment of the special rule was that of Greece, a first partial amount of
7.5 billion Euro was paid out in aid from the Euro rescue Fund, the ESM. The Review of the ongoing reform efforts by the donor, was previously positive.

The ECB had cut off Greek banks in the spring of 2015 from the regular money supply. Since then, they were for refinancing largely on so-called
ELA-emergency loans your Athens Central Bank to rely. This supply wire was for the Institute temporarily necessary for life. Because of fear of a state bankruptcy and the country could leave the Euro Zone, many banks had cleared customer their accounts.

The re-coupling of the normal money supply, the ECB will bring the banks financial facilities. From the Greek Central Bank (Bank of Greece) it was said on Wednesday evening that Greek banks could save 400 to 500 million euros.

You would enjoy money with an interest rate of 0.5 percent instead of the previous 1.55 percentage for the ELA loans to borrow. In addition, the adoption of the Greek state will open the title the local banks participation in the new long-term loans from the ECB.

Even more cheap money

Also on Wednesday, the ECB gave the start shot for a series of super-cheap long-term loans for commercial banks in the Euro-zone. The guardian of the currency, announced the first of four such lines of credit (TLTRO II) and invited institutions to bid.

The big money shots are part of the in March adopted a comprehensive package of Measures that the ECB, among other things, the granting of credit in the currency area will heat up. Commercial banks receive the new loan to zero rate For the benchmark interest rate, currently at 0.0%.

In addition, a premium of up to 0.4 per cent, waving to the institutions, if they are sufficient proven more loans to the economy. The allocation of this first of the new four-year long-term business is planned for Friday, the settlement then next Wednesday.

According to earlier information from insiders, the ECB ensures that the institutions will exchange, especially the more than 420 billion euros of outstanding loans from a predecessor program (TLTRO I) in the new, more affordable loans.

In addition, would likely be queried only several tens of billions of euros in new funds. Banks had retrieved the first major injection of cash in the predecessor program in September 2014 around 83 billion euros.

bea/uhe (reuters, dpa, AP)