Eurozone officials have informally discussed a liquidity for loan guarantee arrangement, according to Bloomberg.
- Finance ministries have exchanged views on the need for keeping or increasing liquidity to respond to humanitarian situation
- Arrangement would help Greek banks keep operating
- Prospect of using ESM for guarantee has been discussed
- No specific proposal under formal discussion
The ECB's ELA lending program is frozen at 88.6B euros but on Monday the ECB raised the haircut for Greek debt, effectively tightening the program. That eventually set off yesterday's rout in the euro and European stocks.
