- That would be ECB financing of a state, and thus illegal
- Key to Greek euro area membership lies in Athens
- “Prefers” Greece staying in the euro zone
- Any further Greek financing would have to come from euro zrea
So what happens when the ECB buys bonds via OMT. If a country defaults, and the ECB has no preferred creditor status, as it did in the SMP, it will be engaging in state financing, no.
Thorny problem…
Interview with Die Welt, via Bloomberg.
