Greece: ECB putting pressure on Eurogroup for new deal

varoufakis-meeting-with-draghi-was-fruitfulGreece’s finance ministry considers that the European Central Bank’s decision to stop accepting Greek bonds as collateral does not reflect on the country’s financial system but is a means of pressure towards the Eurogroup, the council of the EU finance mi nisters, to put together a new deal on Greece’s debt and scrap the old one that has led to a “self-sustaining” crisis.

The full statement, released in the early hours of Thursday, follows:

The Governing Council of the European Central Bank decided to refer Eurosystem counterparties seeking liquidity using Greek debt instruments as collateral to the Emergency Liquidity Assistance (ELA) mechanism.

This decision in no way reflects negative developments in the country’s financial sector and comes after two days of essential stabilization. According to the ECB itself, the Greek system remains adequately capitalized and fully covered through its access to ELA.

By taking and making public this decision, the ECB is putting pressure on the Eurogroup to move quickly towards a new, mutually beneficial agreement between Greece and its partners.

The government daily expands its round of consultations with partners and institutions it is a part of, remains steadfast to the targets of the social salvation program that the Greek people sanctioned with their vote and is consulting with the goal of elaborating a European policy that will end once and for all the ongoing self-sustaining crisis of Greece’s social economy.