GREEK DEBT NEGOTIATIONS RUMBLE ON
It is still extremely unclear what is going on between Greece and its EU creditors, primarily Germany. This week the ECB decided to stop allowing Greek sovereign bonds to be posted as collateral – effectively cutting a source of short term cash funding for the Greek banks. Some have made this out to be a strong signal that Germany wants to cut Greece out of the Eurozone. However, strictly speaking this source of funding was only intended to be available while the bailout agreement was in force, and it is now under negotiation again, meaning that arguably the ECB is only following the rules agreed in advance. Read More….