The ECB Will Monitor The Implementation Of Greece's Austerity
23 July 2015, 17:18
0
102
The ECB Will Monitor The Implementation Of Greece's Austerity
The European Central Bank (ECB) started the travel in Athens, with victory far more skimpy than normal. European Central bank officials who held a telephone talks Wednesday (22/7) to discuss the Emergency Liquidity Assistance (ELA) that will sustain the financial system Greece will carefully keep in case their decisions would only be a prelude to a major task.
They will send you back a team to the capital of Greece to monitor the fulfilment of the implementation of the austerity policies-that are denied in the two previous financial rescue since 2010-approved Government of Greece in return for a bailout deal.
The ECB had interest in monitoring whether Greece running its commitment to good, 'cause it's institutions that engage in a tyre-rescue bank would decide when will enter negaraitu in the monetary stimulus. Alexis Tsipras PM if the Government failed to convince the ECB related reforms, the ECB will bog it down once again with the dilemma of whether to require banks collapse of Greece.
Board of the ECB will decide Wednesday whether to raise the limit of the highest amount of ELA from the now ciut billion euros ($ 98 billion), and until when. The ECB spokeswoman declined to comment about the schedule of the visit that ECB officials. ECB President Mario Draghi to persuade his colleagues in order to raise the limit of the amount of aid last week for the first time since June, by responding to the country's Parliament that affirms the previous measures which permit the start of negotiations on a package of aid worth 86 billion euros.
While the ECB may soon raise the number of ELA, central banks that also got space to take the next step to find out whether the application of the reforms by Greece. It takes a few weeks even monthly, said a number of economists in a Bloomberg survey.
As many as 59% of the respondents said the ECB will minimise the reduction over the additional post of the opposite bank with ELA at least before September. At the same time, almost 90% of estimates of government debt and Greece that guaranteed the Government would return to normal operation is beneficial for the ECB as of the end of this year. The last step that will also explain that State security included in the central bank's quantitative easing program, which could potentially curb the loan interest.
The ECB will monitor Greece aid programs along with the European Commission and the Intarnasional Monetary Fund (IMF)-a group formerly known as the troika. Draghi said it would work with the assumption that the Government of Greece will do what has been promised, but admits it might as well not be happening.
While the ECB monetary policy will focus attention to liquidity and whether the Government of Greece will show or not "fulfilling the obligations that credible" with the program needed to be part of quantitative easing (QE), part of the supervision of the central bank shall prepare a stress test for the country's banks.
It could lead to restructuring or resolution over one or more Greece-banks that are also potentially be in conflict.
ECB denounced the draft law the Government of Greece about the changes the order regulations resolution the European bank, saying they are too a lot of wisdom about the technical issues of political authority to the central bank of Greece overload.
The involvement of the ECB in the bailout, layered in a country that rejected the austerity measures in a referendum, suggesting that officials need to be more than usual to explain why the structural reform necessary, Karten said Junius, Chief Economist at Bank j. Safra Sarasin Ltd. in Zurich and former IMF Economist.
"The problem is, I see the ECB is an institution of technical and political role is not given a clear, to lead us in this experience in the race," he said.
"We must face the situation where 61% voted against the troika program. This means people do not understand why all the reforms needed. If there is no public recognition for the reform, then naturally it will not happen, "he added. https://www.mql5.com/en/signals/120434#!tab=history
