FRANKFURT (MNI) – European Central Governing Council member Ewald
Nowotny on Tuesday did not outright reject the possibility of the ECB
taking a haircut on the Greek government bonds it holds.
Nowotny was asked in an online chat with Austria’s Die Presse.com
about the possibility of the ECB being involved in a second debt
restructuring for Greece, or whether the ECB would forego its profits
from Greek bonds bought under the SMP at a heavy discount.
Nowotny responded: “As long as the expected Troika report (on
Greece) is not yet available, I do not want to address any speculation.”
The ECB has in the past refused to participate in a debt
restructuring for Greece as it would amount to monetary financing of
governments that contravenes the central bank’s mandate.
Germany’s Sueddeutsche Zeitung newspaper earlier Tuesday reported
that Greece’s future within the Eurozone remains uncertain, citing
central bank sources.
While Eurozone governments want to avoid a Greek exit, they are
concerned about raising new funds for the debt stricken country given
the rising scepticism of their electorates, the paper said.
“If Greece is to stay inside [the currency union], governments must
make E30 Billion available,” one central bank official told the paper.
Central bankers are concerned that governments will put the
responsibility on the ECB, which has already offered Greece emergency
financing of E3.5 billion and is holding around E40 billion worth of
Greek government bonds, the Sueddeutsche Zeitung said.
— Frankfurt bureau: +49 69 720 142; email: frankfurt@mni-news.com —
[TOPICS: M$X$$$,M$Y$$$,M$$EC$,MGX$$$,MT$$$$,M$G$$$,M$$CR$]
