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| Version 22 | Version 23 |
|---|---|
| Greece debt crisis: ECB tightens screw ahead of emergency eurozone summit - as it happened | Greece debt crisis: ECB tightens screw ahead of emergency eurozone summit - as it happened |
| (30 days later) | |
| 10.10pm BST | 10.10pm BST |
| 22:10 | 22:10 |
| And here’s Tuesday’s Guardian -- complete with Yanis Varoufakis leaving the building... | And here’s Tuesday’s Guardian -- complete with Yanis Varoufakis leaving the building... |
| GUARDIAN: Greece given 24 hour deadline #tomorrowspaperstoday #BBCPapers pic.twitter.com/xpENuhvFnL | GUARDIAN: Greece given 24 hour deadline #tomorrowspaperstoday #BBCPapers pic.twitter.com/xpENuhvFnL |
| 10.03pm BST | 10.03pm BST |
| 22:03 | 22:03 |
| Just one more thing... the front pages of the UK newspapers. And tomorrow’s crunch summit makes the front of the Financial Times: | Just one more thing... the front pages of the UK newspapers. And tomorrow’s crunch summit makes the front of the Financial Times: |
| FINANCIAL TIMES: Athens offered last chance to avoid crashing out of Euro #tomorrowspaperstoday #BBCPapers pic.twitter.com/iHPjVd2Yh8 | FINANCIAL TIMES: Athens offered last chance to avoid crashing out of Euro #tomorrowspaperstoday #BBCPapers pic.twitter.com/iHPjVd2Yh8 |
| While Angela Merkel’s hard-ish line on Greece is the splash in the Daily Telegraph: | While Angela Merkel’s hard-ish line on Greece is the splash in the Daily Telegraph: |
| TELEGRAPH: Germany refuses to let Greece off hook #tomorrowspaperstoday #BBCPapers pic.twitter.com/tGrRMZ3yEo | TELEGRAPH: Germany refuses to let Greece off hook #tomorrowspaperstoday #BBCPapers pic.twitter.com/tGrRMZ3yEo |
| I wonder what’s on the front page of Tuesday’s Guardian. Stay tuned.... | I wonder what’s on the front page of Tuesday’s Guardian. Stay tuned.... |
| Updated | Updated |
| at 10.10pm BST | at 10.10pm BST |
| 9.44pm BST | 9.44pm BST |
| 21:44 | 21:44 |
| Closing summary: Last chance for Greek deal looms | Closing summary: Last chance for Greek deal looms |
| We’re been live-blogging the reaction to Sunday’s Greek referendum for around 21 hours now. It’s time to wrap up and give the Guardian web servers a rest. | We’re been live-blogging the reaction to Sunday’s Greek referendum for around 21 hours now. It’s time to wrap up and give the Guardian web servers a rest. |
| So, a final recap. | So, a final recap. |
| Greece and the eurozone will make one last, desperate attempt to make progress towards an urgently needed bailout deal on Tuesday. | Greece and the eurozone will make one last, desperate attempt to make progress towards an urgently needed bailout deal on Tuesday. |
| Leaders, and finance ministers, will both hold crucial meetings in Brussels, after Sunday’s referendum result raised the risks of Grexit to new heights. It’s a final chance for Greece to propose a new reform plan that could start the ball rolling towards a new aid package, but the journey looks perilous. | Leaders, and finance ministers, will both hold crucial meetings in Brussels, after Sunday’s referendum result raised the risks of Grexit to new heights. It’s a final chance for Greece to propose a new reform plan that could start the ball rolling towards a new aid package, but the journey looks perilous. |
| The leaders of France and Germany are scrambling to reach a consensus tonight in Paris, at a top-level meeting about Greece (photos here). | The leaders of France and Germany are scrambling to reach a consensus tonight in Paris, at a top-level meeting about Greece (photos here). |
| Greece’s prime minister has held telephone calls with the heads of the International Monetary Fund and also the European Central Bank. Alexis Tsipras told Mario Draghi that the capital controls in Greece need to be lifted, but was told by Christine Lagarde that the IMF cannot released more funds now Athens is in arrears. | Greece’s prime minister has held telephone calls with the heads of the International Monetary Fund and also the European Central Bank. Alexis Tsipras told Mario Draghi that the capital controls in Greece need to be lifted, but was told by Christine Lagarde that the IMF cannot released more funds now Athens is in arrears. |
| Earlier, Francois Hollande insisted that there was time to reach a deal. Angela Merkel sounded less optimistic, though, warning that there was currently no basis for an agreement. Press conference highlights start here. | Earlier, Francois Hollande insisted that there was time to reach a deal. Angela Merkel sounded less optimistic, though, warning that there was currently no basis for an agreement. Press conference highlights start here. |
| Spain’s PM warned that time was now very short, while Dutch leader Mark Rutte said Greece must accept deep reforms to keep its place in the eurozone. | Spain’s PM warned that time was now very short, while Dutch leader Mark Rutte said Greece must accept deep reforms to keep its place in the eurozone. |
| Analysts aren’t convinced that progress will be made tomorrow.... | Analysts aren’t convinced that progress will be made tomorrow.... |
| Vital for ECB not to have fingerprints on Grexit. Summit will be chance for leaders to say 'no deal'. ECB then has cover to do what it must | Vital for ECB not to have fingerprints on Grexit. Summit will be chance for leaders to say 'no deal'. ECB then has cover to do what it must |
| The European Central Bank has tightened the rules for giving emergency funding to Greek banks tonight. It is now imposing tougher haircuts on the assets they hand over, restricting their ability to access the funding. | The European Central Bank has tightened the rules for giving emergency funding to Greek banks tonight. It is now imposing tougher haircuts on the assets they hand over, restricting their ability to access the funding. |
| The ECB also reportedly rejected a request for €3bn in extra ELA support: | The ECB also reportedly rejected a request for €3bn in extra ELA support: |
| #ECB said to have rejected Greek additional #ELA request for €3bn. (BBG) pic.twitter.com/7wi0b2qnJ6 | #ECB said to have rejected Greek additional #ELA request for €3bn. (BBG) pic.twitter.com/7wi0b2qnJ6 |
| This means Greek banks will remain shut for at least two more days, after capital controls were extended until the end of Wednesday. | This means Greek banks will remain shut for at least two more days, after capital controls were extended until the end of Wednesday. |
| Over in Greece, Alexis Tsipras has mobilised the leaders of the main opposition parties to support him. They signed a joint statement, saying Sunday’s referendum showed Greece’s desire for a “socially just and economically sustainable agreement”. | Over in Greece, Alexis Tsipras has mobilised the leaders of the main opposition parties to support him. They signed a joint statement, saying Sunday’s referendum showed Greece’s desire for a “socially just and economically sustainable agreement”. |
| There’s talk of a new mood of national unity, but it could be swiftly shattered. | There’s talk of a new mood of national unity, but it could be swiftly shattered. |
| Tsipras has also passed the honour/poisoned chalice of being Greece’s finance minister to Euclid Tsakalotos, following Yanis Varoufakis’s resignation this morning. | Tsipras has also passed the honour/poisoned chalice of being Greece’s finance minister to Euclid Tsakalotos, following Yanis Varoufakis’s resignation this morning. |
| Tsakalotos was sworn in tonight, and will represent Greece at Tuesday’s eurogroup meeting. He’s unlikely to don a tie for the occasion, though. Here’s our profile of Euclid. | Tsakalotos was sworn in tonight, and will represent Greece at Tuesday’s eurogroup meeting. He’s unlikely to don a tie for the occasion, though. Here’s our profile of Euclid. |
| Varoufakis has denied tonight that he was a sacrifical lamb, having exited the finance ministry in classic style today: | Varoufakis has denied tonight that he was a sacrifical lamb, having exited the finance ministry in classic style today: |
| In the UK, George Osborne has warned that the risks to the UK are rising. Britain is already providing more consular support in Greece for expats and holidaymakers, and help for businesses struggling to trade with Greek firms. | In the UK, George Osborne has warned that the risks to the UK are rising. Britain is already providing more consular support in Greece for expats and holidaymakers, and help for businesses struggling to trade with Greek firms. |
| And Fitch has warned that the risks of Greece leaving the eurozone are much higher, after last night’s resounding No. | And Fitch has warned that the risks of Greece leaving the eurozone are much higher, after last night’s resounding No. |
| I’ll pop back into the blog if there are any major developments -- otherwise, please tune in tomorrow morning for more. Thanks, and goodnight. GW | I’ll pop back into the blog if there are any major developments -- otherwise, please tune in tomorrow morning for more. Thanks, and goodnight. GW |
| Updated | Updated |
| at 9.51pm BST | at 9.51pm BST |
| 9.05pm BST | 9.05pm BST |
| 21:05 | 21:05 |
| Alexis Tsipras has discussed the Greek banking sector’s liquidity issues with ECB president Mario Draghi tonight. | Alexis Tsipras has discussed the Greek banking sector’s liquidity issues with ECB president Mario Draghi tonight. |
| Tsipras also raised the “immediate need” to lift capital controls during the phone call, according to a government spokesman quoted on Reuters. | Tsipras also raised the “immediate need” to lift capital controls during the phone call, according to a government spokesman quoted on Reuters. |
| #BREAKING: #Greece PM Tsipras has just had a phone call with ECB's Draghi to discuss the liquidity issues of the banks says a gov't official | #BREAKING: #Greece PM Tsipras has just had a phone call with ECB's Draghi to discuss the liquidity issues of the banks says a gov't official |
| 8.57pm BST | 8.57pm BST |
| 20:57 | 20:57 |
| Our europe editor, Ian Traynor, sums up the situation tonight: | Our europe editor, Ian Traynor, sums up the situation tonight: |
| Germany and France scrambled to avoid a major split over Greece on Monday evening as the eurozone delivered a damning verdict on Alexis Tsipras’s landslide referendum victory on Sunday and Angela Merkel demanded that the Greek prime minister put down new proposals to break the deadlock. | Germany and France scrambled to avoid a major split over Greece on Monday evening as the eurozone delivered a damning verdict on Alexis Tsipras’s landslide referendum victory on Sunday and Angela Merkel demanded that the Greek prime minister put down new proposals to break the deadlock. |
| As concerns mount that Greek banks will run out of cash and about the damage being inflicted on the country’s economy, hopes for a breakthrough faded. EU leaders voiced despair and descended into recrimination over how to respond to Sunday’s overwhelming rejection of eurozone austerity terms as the price for keeping Greece in the currency. | As concerns mount that Greek banks will run out of cash and about the damage being inflicted on the country’s economy, hopes for a breakthrough faded. EU leaders voiced despair and descended into recrimination over how to respond to Sunday’s overwhelming rejection of eurozone austerity terms as the price for keeping Greece in the currency. |
| Tsipras, meanwhile, moved to insure himself against purported eurozone plots to topple him and force regime change by engineering a national consensus of the country’s five mainstream parties behind his negotiating strategy, focused on securing debt relief. | Tsipras, meanwhile, moved to insure himself against purported eurozone plots to topple him and force regime change by engineering a national consensus of the country’s five mainstream parties behind his negotiating strategy, focused on securing debt relief. |
| Tsipras also sacrificed his controversial finance minister Yanis Varoufakis, in what was seen as a conciliatory signal towards Greece’s creditors. | Tsipras also sacrificed his controversial finance minister Yanis Varoufakis, in what was seen as a conciliatory signal towards Greece’s creditors. |
| In Paris, Chancellor Angela Merkel and President François Hollande tried to plot a common strategy after Greeks returned a resounding no to five years of eurozone-scripted austerity. The two leaders were trying to find a joint approach to the growing crisis ahead of an emergency eurozone summit on Tuesday to deal with the fallout. | In Paris, Chancellor Angela Merkel and President François Hollande tried to plot a common strategy after Greeks returned a resounding no to five years of eurozone-scripted austerity. The two leaders were trying to find a joint approach to the growing crisis ahead of an emergency eurozone summit on Tuesday to deal with the fallout. |
| But Merkel said there was no current basis for negotiating with the Greek side and called on Tsipras to make the next move. | But Merkel said there was no current basis for negotiating with the Greek side and called on Tsipras to make the next move. |
| As eurozone leaders prepared for today’s emergency summit in Brussels , the heads of government were at odds. France, Italy and Spain are impatient for a deal while Germany, the European commission and northern Europe seem content to let Greece stew andallow the euphoria following Sunday’s vote give way to the sobering realities of bank closures, cash shortages and isolation..... | As eurozone leaders prepared for today’s emergency summit in Brussels , the heads of government were at odds. France, Italy and Spain are impatient for a deal while Germany, the European commission and northern Europe seem content to let Greece stew andallow the euphoria following Sunday’s vote give way to the sobering realities of bank closures, cash shortages and isolation..... |
| Here’s the full story. | Here’s the full story. |
| Eurozone struggles to find joint response to Greek referendum http://t.co/K41uqjZ75V | Eurozone struggles to find joint response to Greek referendum http://t.co/K41uqjZ75V |
| 8.51pm BST | 8.51pm BST |
| 20:51 | 20:51 |
| Christine Lagarde spoke to Alexis Tsipras today, and explained that the International Monetary Fund can no longer provide money to Greece after it failed to repay €1.6bn last week. | Christine Lagarde spoke to Alexis Tsipras today, and explained that the International Monetary Fund can no longer provide money to Greece after it failed to repay €1.6bn last week. |
| Under IMF rules, once a country is in arrears, fresh funds cannot be supplied, a spokesman explained (via Reuters) | Under IMF rules, once a country is in arrears, fresh funds cannot be supplied, a spokesman explained (via Reuters) |
| 8.45pm BST | 8.45pm BST |
| 20:45 | 20:45 |
| Hat-tip to Sky News’s Ed Conway for getting into Yanis Varoufakis’s leaving bash tonight and grabbing a quick interview. | Hat-tip to Sky News’s Ed Conway for getting into Yanis Varoufakis’s leaving bash tonight and grabbing a quick interview. |
| Greece’s finance minister denied that he’d sacrificed himself, declaring: | Greece’s finance minister denied that he’d sacrificed himself, declaring: |
| “No, no, this is politics, mate. There are no sacrificial lambs. | “No, no, this is politics, mate. There are no sacrificial lambs. |
| Varoufakis added that he’ll rest on Tuesday, but is bound to offer advice from the sidelines. | Varoufakis added that he’ll rest on Tuesday, but is bound to offer advice from the sidelines. |
| In which I gatecrash @yanisvaroufakis's leaving party at the finance ministry in Athens: https://t.co/q24TfFcvei | In which I gatecrash @yanisvaroufakis's leaving party at the finance ministry in Athens: https://t.co/q24TfFcvei |
| 8.38pm BST | 8.38pm BST |
| 20:38 | 20:38 |
| Tuesday’s edition of the Guardian will carry many letters from readers about the Greek crisis, expressing support for Greece at this time. | Tuesday’s edition of the Guardian will carry many letters from readers about the Greek crisis, expressing support for Greece at this time. |
| Guardian Letters: Athens has reinvented our vision of democracy | Guardian Letters: Athens has reinvented our vision of democracy |
| 8.32pm BST | 8.32pm BST |
| 20:32 | 20:32 |
| Italy’s finance minister has suggested that the eurozone is willing to consider a new aid programme for Greece: | Italy’s finance minister has suggested that the eurozone is willing to consider a new aid programme for Greece: |
| Pier Carlo Padoan told Canale 5 television. | Pier Carlo Padoan told Canale 5 television. |
| “The 18 (other countries in the euro) are open to re-considering a Greek request which can only be a request for a new programme, not a continuation of the old one,” | “The 18 (other countries in the euro) are open to re-considering a Greek request which can only be a request for a new programme, not a continuation of the old one,” |
| Italy econ min says euro zone countries open to a new Greek proposal http://t.co/0DFl5mnqb7 | Italy econ min says euro zone countries open to a new Greek proposal http://t.co/0DFl5mnqb7 |
| 8.23pm BST | 8.23pm BST |
| 20:23 | 20:23 |
| Spain’s prime minister Mariano Rajoy has echoed Angela Merkel and Francois Hollande tonight, by warning that time is very short: | Spain’s prime minister Mariano Rajoy has echoed Angela Merkel and Francois Hollande tonight, by warning that time is very short: |
| * Spain's rajoy says negotiations over any Greek deal must take place quickly - RTRS | * Spain's rajoy says negotiations over any Greek deal must take place quickly - RTRS |
| 8.19pm BST | 8.19pm BST |
| 20:19 | 20:19 |
| Dutch prime minister Mark Rutte has warned Greece it must decide whether it wants to remain in the eurozone, and accept the ‘deep reforms’ needed. | Dutch prime minister Mark Rutte has warned Greece it must decide whether it wants to remain in the eurozone, and accept the ‘deep reforms’ needed. |
| He told MPs tonight that Athens must deliver acceptable proposals to its creditors. | He told MPs tonight that Athens must deliver acceptable proposals to its creditors. |
| If things stay the way they are, then we’re at an impasse. There is no other choice, they must be ready to accept deep reforms.” | If things stay the way they are, then we’re at an impasse. There is no other choice, they must be ready to accept deep reforms.” |
| 8.12pm BST | 8.12pm BST |
| 20:12 | 20:12 |
| A Greek insider has told Reuters that the European Central Bank hiked the haircut on Greek assets by around 10%, but the impact will be ‘minimal’. | A Greek insider has told Reuters that the European Central Bank hiked the haircut on Greek assets by around 10%, but the impact will be ‘minimal’. |
| #Greece banking source indicates #ECB increased haircut on Greek collateral for ELA by around 10% but reiterates that impact will be minimal | #Greece banking source indicates #ECB increased haircut on Greek collateral for ELA by around 10% but reiterates that impact will be minimal |
| So the ECB hasn’t pulled the plug, yet..... | So the ECB hasn’t pulled the plug, yet..... |
| Updated | Updated |
| at 8.20pm BST | at 8.20pm BST |
| 8.02pm BST | 8.02pm BST |
| 20:02 | 20:02 |
| AFP has a good summary of the situation in Greece’s banking sector: | AFP has a good summary of the situation in Greece’s banking sector: |
| Greek banks to stay closed Tuesday and Wednesday | Greek banks to stay closed Tuesday and Wednesday |
| Greek banks will remain closed on Tuesday and Wednesday with limits on daily withdrawals unchanged, officials said on Monday as the European Central Bank maintained its liquidity assistance to the nation’s beleaguered lenders. | Greek banks will remain closed on Tuesday and Wednesday with limits on daily withdrawals unchanged, officials said on Monday as the European Central Bank maintained its liquidity assistance to the nation’s beleaguered lenders. |
| “Until Wednesday evening we continue as things stand today,” said Louka Katseli, chairwoman of the National Bank of Greece. | “Until Wednesday evening we continue as things stand today,” said Louka Katseli, chairwoman of the National Bank of Greece. |
| Speaking on behalf of the association of Greek banks, she added: | Speaking on behalf of the association of Greek banks, she added: |
| “If there is a decision by the European Central Bank in the meantime enabling us to modify this decision, there will be a new decision.” | “If there is a decision by the European Central Bank in the meantime enabling us to modify this decision, there will be a new decision.” |
| The European Central Bank’s governing council decided to maintain the emergency liquidity assistance keeping Greek banks afloat at the level set on June 26, the Frankfurt-based bank said in a statement. | The European Central Bank’s governing council decided to maintain the emergency liquidity assistance keeping Greek banks afloat at the level set on June 26, the Frankfurt-based bank said in a statement. |
| But the ECB said it had also “adjusted” the collateral demanded from Greek banks in return for the assistance. | But the ECB said it had also “adjusted” the collateral demanded from Greek banks in return for the assistance. |
| “The financial situation of the Hellenic Republic has an impact on Greek banks since the collateral they use in ELA relies to a significant extent on government-linked assets... | “The financial situation of the Hellenic Republic has an impact on Greek banks since the collateral they use in ELA relies to a significant extent on government-linked assets... |
| “In this context, the governing council decided today to adjust the haircuts on collateral accepted by the Bank of Greece for ELA,” the ECB added, without specifying the level. | “In this context, the governing council decided today to adjust the haircuts on collateral accepted by the Bank of Greece for ELA,” the ECB added, without specifying the level. |
| Capital controls were enacted on June 28, limiting ATM withdrawals by Greeks to €60 per account daily after a referendum on bailout terms sparked a run on deposits. | Capital controls were enacted on June 28, limiting ATM withdrawals by Greeks to €60 per account daily after a referendum on bailout terms sparked a run on deposits. |
| The Bank of Greece had requested an increase in emergency liquidity assistance (ELA) and that request was the subject of the ECB meeting, held a day after 61% of Greeks voted against further austerity measures in Sunday’s plebiscite. | The Bank of Greece had requested an increase in emergency liquidity assistance (ELA) and that request was the subject of the ECB meeting, held a day after 61% of Greeks voted against further austerity measures in Sunday’s plebiscite. |
| ELA is currently the only source of financing for Greek banks, and therefore the Greek economy. But with Greece’s bailout programme now officially expired and in the absence of any new programme, the conditions for its continuation are no longer met. | ELA is currently the only source of financing for Greek banks, and therefore the Greek economy. But with Greece’s bailout programme now officially expired and in the absence of any new programme, the conditions for its continuation are no longer met. |
| But analysts believe the ECB will not want to be the one to pull the plug on Greece and force the country out of the single currency. | But analysts believe the ECB will not want to be the one to pull the plug on Greece and force the country out of the single currency. |
| Updated | Updated |
| at 8.02pm BST | at 8.02pm BST |
| 7.42pm BST | 7.42pm BST |
| 19:42 | 19:42 |
| Updated | Updated |
| at 7.43pm BST | at 7.43pm BST |
| 7.40pm BST | 7.40pm BST |
| 19:40 | 19:40 |
| Two members of the ECB’s governing council pushed for Greece’s banking sector to be hit with even tougher measures, according to Claire Jones of the Financial Times. | Two members of the ECB’s governing council pushed for Greece’s banking sector to be hit with even tougher measures, according to Claire Jones of the Financial Times. |
| She writes: | She writes: |
| The ECB refused to disclose the size of the new haircuts, but all four of Greece’s main banks are thought still to have enough collateral available to roll over their emergency loans. | The ECB refused to disclose the size of the new haircuts, but all four of Greece’s main banks are thought still to have enough collateral available to roll over their emergency loans. |
| Two people on the governing council objected to the decision, according to Eurosystem sources. Both of the objectors wanted the ECB to take stronger measures. | Two people on the governing council objected to the decision, according to Eurosystem sources. Both of the objectors wanted the ECB to take stronger measures. |
| That implies either an even higher haircut (putting Greek banks in greater peril), lowering the ELA cap (ditto), or terminating ELA off (which would be game over for Greek banks). | That implies either an even higher haircut (putting Greek banks in greater peril), lowering the ELA cap (ditto), or terminating ELA off (which would be game over for Greek banks). |
| More: The ECB has toughened the terms on its Greek lifeline http://t.co/GSTYEVvt98 | More: The ECB has toughened the terms on its Greek lifeline http://t.co/GSTYEVvt98 |
| 7.34pm BST | 7.34pm BST |
| 19:34 | 19:34 |
| The ECB may not have pulled the trigger on Greek banks tonight, but it is reserving the right to take a shot if Tuesday’s emergency summit doesn’t deliver any progress. | The ECB may not have pulled the trigger on Greek banks tonight, but it is reserving the right to take a shot if Tuesday’s emergency summit doesn’t deliver any progress. |
| The @ecb just added a bit more pressure to tomorrow's Eurogroup/Eurosummit *ECB WILL REVIEW GREEK BANKS' SITUATION WEDNESDAY, OFFICIAL SAYS | The @ecb just added a bit more pressure to tomorrow's Eurogroup/Eurosummit *ECB WILL REVIEW GREEK BANKS' SITUATION WEDNESDAY, OFFICIAL SAYS |
| I assume @ecb worked out how much collateral was left at Greek banks before raising haircuts. Don't want to run risk of being executioners | I assume @ecb worked out how much collateral was left at Greek banks before raising haircuts. Don't want to run risk of being executioners |
| Updated | Updated |
| at 7.34pm BST | at 7.34pm BST |
| 7.31pm BST | 7.31pm BST |
| 19:31 | 19:31 |
| Confused? Try this.... | Confused? Try this.... |
| This graph is crucial to understanding what the ECB did tonight. | This graph is crucial to understanding what the ECB did tonight. |
| ECB adjusts haircut on Greek collateral. Barclays says 60% haircut would wipe out all spare eligible collateral pic.twitter.com/wsmZlmKLBQ | ECB adjusts haircut on Greek collateral. Barclays says 60% haircut would wipe out all spare eligible collateral pic.twitter.com/wsmZlmKLBQ |
| By raising the haircut applied on assets from Greek banks, it cuts the amount of emergency liquidity that can be handed back in return. Every time the haircut goes up, the ‘value’ of the assets that can be used to access ELA falls. | By raising the haircut applied on assets from Greek banks, it cuts the amount of emergency liquidity that can be handed back in return. Every time the haircut goes up, the ‘value’ of the assets that can be used to access ELA falls. |
| So, to simplify the issue, each €1bn of Greek assets might have yielded €520m of emergency cash yesterday, but tomorrow it might only be good for €480m, for example (figures plucked out of the air). | So, to simplify the issue, each €1bn of Greek assets might have yielded €520m of emergency cash yesterday, but tomorrow it might only be good for €480m, for example (figures plucked out of the air). |
| Raise the haircut high enough, and Greek banks simply can’t qualify for extra assistance at all. | Raise the haircut high enough, and Greek banks simply can’t qualify for extra assistance at all. |
| Updated | Updated |
| at 8.08pm BST | at 8.08pm BST |
| 7.25pm BST | 7.25pm BST |
| 19:25 | 19:25 |
| The European Central Bank has just raised the risk of a Greek bank going under, argues George Hay, European Financial Editor at Reuters Breakingviews. | The European Central Bank has just raised the risk of a Greek bank going under, argues George Hay, European Financial Editor at Reuters Breakingviews. |
| ECB haircut move restricts crisis loans and reduces the amount of time Greek banks can stay alive. They are already almost illiquid. | ECB haircut move restricts crisis loans and reduces the amount of time Greek banks can stay alive. They are already almost illiquid. |
| ECB looks to have calculated that the fallout from potentially putting a weak Greek bank in resolution = less than no response to a No vote. | ECB looks to have calculated that the fallout from potentially putting a weak Greek bank in resolution = less than no response to a No vote. |