Post
Topic
Board Economics
Re: What can greece central bank do?
by
ummina
on 23/08/2015, 07:21:54 UTC
Since March, as a way to pump money into the eurozone economy, the central bank has been buying bonds issued by eurozone countries, along with other debt, at a rate of 60 billion euros, or $67 billion, a month.

Greek government bonds are ineligible as long as the country is not adhering to conditions set by its main creditors: the other eurozone countries and the International Monetary Fund.

If Greece got back into a creditor-approved aid program, the European Central Bank could begin buying its bonds in large quantities.

That would be a boon for Greek banks, which could unload their large holdings of Greek government bonds. They could then use the cash to extend loans and help restart the Greek economy. The government might also benefit from lower market interest rates.

Mario Draghi, the president of the European Central Bank, hinted at such benefits for Greece at a news conference last month in Frankfurt.

If there were a “strong agreement,” he said, “everything else would then follow.”

“And I’m pretty sure it would follow easily,” he added.

full article you can watch on here guys http://www.nytimes.com/live/greek-debt-crisis-live-updates/how-the-european-central-bank-could-really-help-greece/