“We have Plan B” Greek Finance Minister Yanis Varoufakis told private Mega TV on Thursday, just a couple of hours after ECB head Mario Draghi linked ECD funding with Greece’s compliance to the bailout and austerity program, righting the conditions for liquidity.
At a press conference today, Mario Draghi distributed money around, but to the Greek, he said three times “No”.
NO, ECB will not allow Athens to sell additional T-bills total worth 8 billion euro.
NO, ECB will not buy Greek bonds under its new assets-buying program.
NO, ECB will not accept Greek bonds as collateral.
Draghi said further that the European Central Bank has already lent 100 billion euros to Greece’s banks, or 68 percent of the country’s gross domestic product.
Only concession towards Greece was to raise the Emergency Liquidity Assistance (ELA) fund by 500,000,000 euro to total €68.8 billion.
“The ECB is a rule-based institution. It is not a political institution. It cannot provide monetary financing to governments, either directly or indirectly.
We cannot give money to banks to fund governments,” Draghi said.
Odd, that he did not add that he had no problem to fund banks and put the burden on taxpayers around Europe, when it comes to fund the oh-so-dear banks.
PS No, Varoufakis did not elaborate on the Greek Plan B.