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BoG Stournaras: “Banks are solid, deposits and liquidity safe”

Greek central bank governor Yannis Stournaras said on Thursday that Greek banks were solid and under control, a day after the European Central Bank denied them use of Greek bonds as collateral for loans.

“Deposits and liquidity are absolutely safe,” Stournaras, who is also a member of the European Central Bank’s Governing Council, told reporters.

“There is absolutely no problem with the banks. We are under control. It was a calm day today,” he said referring to bank deposits.

The ECB’s move late on Wednesday coincided with a series of meetings between European officials and Greek Prime Minister Alexis Tsipras and Finance Minister Yanis Varoufakis.

The two have been seeking support for a new deal with Greece’s international lenders that would allow an end to years of imposed austerity.

Stournaras said the ECB’s decision could be temporary.

“The ECB’s decision can be taken back if there is a deal from the Greek government (and its EU partners),” he said. (via Reuters)

Good to know that there is no liquidity problem with the banks and that deposits are safe.

Some of us can still recall, Stournaras’ warning on 15. Dec 2014:

“The crisis in recent days is now taking serious dimensions, that liquidity in the market is decreasing at a fast pace … and the risk of irreparable damage for the Greek economy is now great,” said Yannis Stournaras, the former finance minister who is now the head of the Greek central bank.

His comments come ahead of of a presidential vote that starts on Wednesday and risks triggering snap elections if the government nominee loses. Polls show the radical leftist Syriza party that wants to tear up Greece’s EU/IMF bailout would win if elections were held now.”

But hey! That had to do with the political instability due to the presidential elections, the possibility of snap elections and the “risk” that SYRIZA may win in January. The former FinMin of Samaras’ government had to be in line with those promoting him.

 

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2 comments

  1. Interesting that BoG Governor Stournaras has a positive and market-calming message, when BoG is a branch office of ECB and not an old fashioned National Bank.