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Version 14 Version 15
Greek debt crisis: ECB raises emergency liquidity and pushes for debt relief - as it happened Greek debt crisis: ECB raises emergency liquidity and pushes for debt relief - as it happened
(6 months later)
7.34pm BST7.34pm BST
19:3419:34
Almost forgot. Here’s the other news story of the night:Almost forgot. Here’s the other news story of the night:
Related: George Osborne backs down on use of EU bailout fund in Greece crisis
UpdatedUpdated
at 7.34pm BSTat 7.34pm BST
7.31pm BST7.31pm BST
19:3119:31
That’s probably all for today. An earlier finish than in recent weeks, as the Greek crisis becomes a little calmer....but nowhere near a resolution, of course.That’s probably all for today. An earlier finish than in recent weeks, as the Greek crisis becomes a little calmer....but nowhere near a resolution, of course.
But for now, we’ll take the early cut.But for now, we’ll take the early cut.
Here’s our news story covering the day’s events:Here’s our news story covering the day’s events:
Related: Greece debt crisis: new ECB cash lifeline could reopen Greek banks
Back tomorrow to see how German MPs react to a third Greek bailout. Goodnight! GWBack tomorrow to see how German MPs react to a third Greek bailout. Goodnight! GW
7.20pm BST7.20pm BST
19:2019:20
Greece’s banks will stay closed until the close of play on Sunday, the finance ministry just announced.Greece’s banks will stay closed until the close of play on Sunday, the finance ministry just announced.
That tees up the possibility of reopening on Monday, with limited services, if a bridge loan for Greece is signed and sealed on Friday (as seems likely).That tees up the possibility of reopening on Monday, with limited services, if a bridge loan for Greece is signed and sealed on Friday (as seems likely).
#Greece MoF said bank holiday extended until Jul 19. #economy #ecb #ela #banking#Greece MoF said bank holiday extended until Jul 19. #economy #ecb #ela #banking
7.16pm BST7.16pm BST
19:1619:16
A couple of late photos: Angela Merkel and Wolfgang Schäuble at a meeting with their party MPs this afternoon, ahead of tomorrow’s vote on whether to open talks on a third Greek bailout:A couple of late photos: Angela Merkel and Wolfgang Schäuble at a meeting with their party MPs this afternoon, ahead of tomorrow’s vote on whether to open talks on a third Greek bailout:
Merkel apparently told MPs it was “definitely right” to have examined all scenarios, including a potential short-term Grexit.Merkel apparently told MPs it was “definitely right” to have examined all scenarios, including a potential short-term Grexit.
UpdatedUpdated
at 7.33pm BSTat 7.33pm BST
7.05pm BST7.05pm BST
19:0519:05
Over in Berlin, Wolfgang Schäuble has told German MPs that the International Monetary Fund won’t be involved in the first bailout payment to Greece.Over in Berlin, Wolfgang Schäuble has told German MPs that the International Monetary Fund won’t be involved in the first bailout payment to Greece.
He made the comments in a letter, ahead of Friday morning’s Bundestag debate on the Greek deal.He made the comments in a letter, ahead of Friday morning’s Bundestag debate on the Greek deal.
Over to Reuters:Over to Reuters:
That tranche is due to be paid in mid-August 2015, according to the letter, seen by Reuters, in which Schaeuble requested that parliament agree to open talks on a third Greek bailout.That tranche is due to be paid in mid-August 2015, according to the letter, seen by Reuters, in which Schaeuble requested that parliament agree to open talks on a third Greek bailout.
The letter said the IMF would make its further involvement dependent on a successful conclusion of the first programme review in autumn 2015 and a confirmation of Greece’s debt sustainability.The letter said the IMF would make its further involvement dependent on a successful conclusion of the first programme review in autumn 2015 and a confirmation of Greece’s debt sustainability.
The IMF cannot advance any more money while Greece is in arrears, and it has already made its views on debt sustainability very clear:The IMF cannot advance any more money while Greece is in arrears, and it has already made its views on debt sustainability very clear:
These quotes kind of sums up Greece really http://t.co/wTd1tiDSpA pic.twitter.com/oMEgVGaJOGThese quotes kind of sums up Greece really http://t.co/wTd1tiDSpA pic.twitter.com/oMEgVGaJOG
6.31pm BST6.31pm BST
18:3118:31
As we flagged up yesterday, the UK government has succeeded in indemnifying itself against potential losses from Greece’s bridging loan.As we flagged up yesterday, the UK government has succeeded in indemnifying itself against potential losses from Greece’s bridging loan.
Chancellor George Osborne declared:Chancellor George Osborne declared:
“We have today secured a significant victory and strengthened the protections for the UK in the latest Greek bailout and any future bailouts of Eurozone countries.”“We have today secured a significant victory and strengthened the protections for the UK in the latest Greek bailout and any future bailouts of Eurozone countries.”
However.... that victory was only needed because the EU tore up an agreement that the EFSM fund would never again be used for eurozone bailouts, due to Greece’s urgent need for cash.However.... that victory was only needed because the EU tore up an agreement that the EFSM fund would never again be used for eurozone bailouts, due to Greece’s urgent need for cash.
Osborne says UK contribution to Greek loan will be fully protected http://t.co/yMovagFS2tOsborne says UK contribution to Greek loan will be fully protected http://t.co/yMovagFS2t
5.54pm BST5.54pm BST
17:5417:54
Euro markets hit six-week high on Greek reliefEuro markets hit six-week high on Greek relief
European stock markets ended the day strongly, as investors reacted to signs that the Greek crisis was easing, for now at least.European stock markets ended the day strongly, as investors reacted to signs that the Greek crisis was easing, for now at least.
The main indices all finished higher, with European markets hitting their highest level since late May.The main indices all finished higher, with European markets hitting their highest level since late May.
The €900m increase in Greece’s emergency liquidity levels raised hopes that Greece’s banks will reopen on Monday, although capital controls will stay in place.The €900m increase in Greece’s emergency liquidity levels raised hopes that Greece’s banks will reopen on Monday, although capital controls will stay in place.
Jasper Lawler of CMC Markets explains:Jasper Lawler of CMC Markets explains:
The ECB’s willingness to raise the ceiling on the ELA puts to bed the immediate risk of a banking collapse and paves the path towards the reopening of Greek banks and the eventual end to capital controls.The ECB’s willingness to raise the ceiling on the ELA puts to bed the immediate risk of a banking collapse and paves the path towards the reopening of Greek banks and the eventual end to capital controls.
Mr Draghi saying that the need for debt relief in Greece is “uncontroversial” puts the ECB’s stance on the issue alongside the IMF. It increases the odds of a more substantial haircut than has been admitted by Eurozone finance ministers.Mr Draghi saying that the need for debt relief in Greece is “uncontroversial” puts the ECB’s stance on the issue alongside the IMF. It increases the odds of a more substantial haircut than has been admitted by Eurozone finance ministers.
Last night’s vote in the Athens parliament to accept the bailout (through gritted teeth) was also cheered by traders, as it means a bridge loan is also imminent.Last night’s vote in the Athens parliament to accept the bailout (through gritted teeth) was also cheered by traders, as it means a bridge loan is also imminent.
5.26pm BST5.26pm BST
17:2617:26
4.52pm BST4.52pm BST
16:5216:52
Over in Athens, Alexis Tsipras has been meeting with key aides this afternoon, plotting his next move.Over in Athens, Alexis Tsipras has been meeting with key aides this afternoon, plotting his next move.
A government minister says that a reshuffle won’t be announced on Thursday, though.A government minister says that a reshuffle won’t be announced on Thursday, though.
So the up-and-coming stars of Greek politics should stay by their phones (and those who rebelled last night needn’t rush to clear their desks)So the up-and-coming stars of Greek politics should stay by their phones (and those who rebelled last night needn’t rush to clear their desks)
Greek gov reshuffle won't be announced today. Courage to all colleagues there..#Greece #Agreekment https://t.co/HQ79bq4Ut0Greek gov reshuffle won't be announced today. Courage to all colleagues there..#Greece #Agreekment https://t.co/HQ79bq4Ut0
4.35pm BST4.35pm BST
16:3516:35
Hallo..... German tabloid Bild is reporting that senior social democrat Peer Steinbrück will vote against the Greek bailout package on Friday morning.Hallo..... German tabloid Bild is reporting that senior social democrat Peer Steinbrück will vote against the Greek bailout package on Friday morning.
Thats big news: Ex-SPD-chancellor-candidate @peersteinbrueck will vote NO tomorrow in german parliament @BILD #grexit http://t.co/wN9DsyAMWzThats big news: Ex-SPD-chancellor-candidate @peersteinbrueck will vote NO tomorrow in german parliament @BILD #grexit http://t.co/wN9DsyAMWz
Steinbrück ran against Merkel for the chancellorship in 2013, and was finance minister in her first coalition.Steinbrück ran against Merkel for the chancellorship in 2013, and was finance minister in her first coalition.
It appears that he believes Greece would be better off outside the eurozone:It appears that he believes Greece would be better off outside the eurozone:
Steinbrück no longer has skin in game politically and seems to genuinely believe #Grexit best scenario for Greece as will mean debt reliefSteinbrück no longer has skin in game politically and seems to genuinely believe #Grexit best scenario for Greece as will mean debt relief
4.24pm BST4.24pm BST
16:2416:24
Here’s some required reading before tomorrow’s vote in the Bundestag on the new Greek bailout package.Here’s some required reading before tomorrow’s vote in the Bundestag on the new Greek bailout package.
Jürgen Habermas, one of Germany’s leading intellectuals, has heavily criticised Angela Merkel for her handling of the Greek crisis.Jürgen Habermas, one of Germany’s leading intellectuals, has heavily criticised Angela Merkel for her handling of the Greek crisis.
Rather than acting in Europe’s best interests, he told the Guardian, Merkel gambled half a century of political capital to bring Alexis Tsipras into line.Rather than acting in Europe’s best interests, he told the Guardian, Merkel gambled half a century of political capital to bring Alexis Tsipras into line.
As Haberas puts it:As Haberas puts it:
“Forcing the Greek government to agree to an economically questionable, predominantly symbolic privatisation fund cannot be understood as anything other an act of punishment against a leftwing government.”“Forcing the Greek government to agree to an economically questionable, predominantly symbolic privatisation fund cannot be understood as anything other an act of punishment against a leftwing government.”
Related: Merkel 'gambling away' Germany's reputation over Greece, says Habermas
4.09pm BST4.09pm BST
16:0916:09
Greek banks may reopen on MondayGreek banks may reopen on Monday
The ECB’s decision to pump another €900m of emergency liquidity into the Greek banking sector means banks could open next week, after a three-week hiatus.The ECB’s decision to pump another €900m of emergency liquidity into the Greek banking sector means banks could open next week, after a three-week hiatus.
One senior banker has told Reuters that:One senior banker has told Reuters that:
“They will open on Monday.”“They will open on Monday.”
A ministerial decision on the bank holiday could come later today.A ministerial decision on the bank holiday could come later today.
3.23pm BST3.23pm BST
15:2315:23
Snap Summary: Masterful Mario joins call for Greek debt reliefSnap Summary: Masterful Mario joins call for Greek debt relief
A vintage performance by the European Central Bank governor there.A vintage performance by the European Central Bank governor there.
Mario Draghi deftly set the agenda for the next few weeks, while also stoutly defended his role in the crisis and putting his critics - at home and aboard - in their place.Mario Draghi deftly set the agenda for the next few weeks, while also stoutly defended his role in the crisis and putting his critics - at home and aboard - in their place.
The top line news is that the ECB has accepted a request to provide an extra €900m to the Greek banking sector. That emergency liquidity will keep the cash machines churning out €60 per day for the next week.The top line news is that the ECB has accepted a request to provide an extra €900m to the Greek banking sector. That emergency liquidity will keep the cash machines churning out €60 per day for the next week.
It’s a relatively small rise, and it won’t allow the banking sector to fully reopen. But it’s a signal that Greece could be inching back to relative normality.It’s a relatively small rise, and it won’t allow the banking sector to fully reopen. But it’s a signal that Greece could be inching back to relative normality.
I did not expect the #ECB to raise ELA for #Greek banks already today. The decision shows willingness to support a fragile process #GreeceI did not expect the #ECB to raise ELA for #Greek banks already today. The decision shows willingness to support a fragile process #Greece
Most of the questions at today’s press conference focused on Greece. Draghi threw his considerable muscle behind calls for Greece to receive debt relief, echoing the IMF, the US Treasury, and Athens, of course.Most of the questions at today’s press conference focused on Greece. Draghi threw his considerable muscle behind calls for Greece to receive debt relief, echoing the IMF, the US Treasury, and Athens, of course.
But the beautiful thing about Draghi’s intervention, is that he made it sound like the most natural, obvious thing in the world:But the beautiful thing about Draghi’s intervention, is that he made it sound like the most natural, obvious thing in the world:
“It’s uncontroversial that debt relief is necessary and I think that nobody has ever disputed that. The issue is what is the best form of debt relief within our framework, within our legal institutional framework.“It’s uncontroversial that debt relief is necessary and I think that nobody has ever disputed that. The issue is what is the best form of debt relief within our framework, within our legal institutional framework.
I think we should focus on this point in the coming weeks.”I think we should focus on this point in the coming weeks.”
Not, I suspect, what Angela Merkel wanted to hear a day before she asks a restless Bundestag to vote on the package.Not, I suspect, what Angela Merkel wanted to hear a day before she asks a restless Bundestag to vote on the package.
Draghi also calmly declared that he expects Greece to repay the ECB on Monday, suggesting that it will get a bridge loan (perhaps even today).Draghi also calmly declared that he expects Greece to repay the ECB on Monday, suggesting that it will get a bridge loan (perhaps even today).
Criticism of the ECB’s actions were swept to the boundary, with Draghi insistent that the governing council has simply followed its mandate. The drip-drip-drip of criticism that he’s been “asphyxiating” the Greek banking sector may have hit home.Criticism of the ECB’s actions were swept to the boundary, with Draghi insistent that the governing council has simply followed its mandate. The drip-drip-drip of criticism that he’s been “asphyxiating” the Greek banking sector may have hit home.
Criticism has been “quite unwarranted”, he declared, explaining that the ECB had steered a sensible course between fuelling a bank run and crashing the whole system.Criticism has been “quite unwarranted”, he declared, explaining that the ECB had steered a sensible course between fuelling a bank run and crashing the whole system.
Draghi dealt just as firmly with suggestions that he could be more skeptical of Alexis Tsipras’s government, and its ability to do its job. That is hardly the role of an independent central bank chief (indeed, Berlin has already got this role covered).Draghi dealt just as firmly with suggestions that he could be more skeptical of Alexis Tsipras’s government, and its ability to do its job. That is hardly the role of an independent central bank chief (indeed, Berlin has already got this role covered).
There was mixed news for Greeks who can’t access their banks. Capital controls are going to be around for a while, until the threat of a bank run has receded.There was mixed news for Greeks who can’t access their banks. Capital controls are going to be around for a while, until the threat of a bank run has receded.
But on a happier note, Draghi hinted that Greece could soon share in the ECB’s QE programme, if it sticks with its latest bailout programme.But on a happier note, Draghi hinted that Greece could soon share in the ECB’s QE programme, if it sticks with its latest bailout programme.
In the meantime, we’ll:In the meantime, we’ll:
“continues to act on the assumption that Greece is and will ... remain a member of the euro area.”“continues to act on the assumption that Greece is and will ... remain a member of the euro area.”
And that won’t be shaken by any talk of ‘temporary Grexit’ from the likes of Wolfgang Schäuble.And that won’t be shaken by any talk of ‘temporary Grexit’ from the likes of Wolfgang Schäuble.
In short, it was a picture of a central banker dutifully following his mandate, and quietly steering the eurozone through a mess that is not of his making.In short, it was a picture of a central banker dutifully following his mandate, and quietly steering the eurozone through a mess that is not of his making.
Shorter Draghi; Thank God you've got me and not one of those other clowns. I will cut you thoughShorter Draghi; Thank God you've got me and not one of those other clowns. I will cut you though
2.38pm BST2.38pm BST
14:3814:38
Another tantalising development.... Draghi hints that Greece could soon benefit from the ECB’s quantitative-easing scheme, if it delivers on what’s been demanded.Another tantalising development.... Draghi hints that Greece could soon benefit from the ECB’s quantitative-easing scheme, if it delivers on what’s been demanded.
#ECB's Draghi: Greek QE eligibility depends on debt rating. Greek ECB repayment would leave room for QE purchases.#ECB's Draghi: Greek QE eligibility depends on debt rating. Greek ECB repayment would leave room for QE purchases.
#Draghi: If SMP bonds re-payed on Monday, #Greece will become QE-eligible. BUT #ECB can't purchase without good implementation of program.#Draghi: If SMP bonds re-payed on Monday, #Greece will become QE-eligible. BUT #ECB can't purchase without good implementation of program.
2.30pm BST2.30pm BST
14:3014:30
Draghi also gives Alexis Tsipras a nudge:Draghi also gives Alexis Tsipras a nudge:
Draghi: There are questions about implementation: will and capacity, up to the Greek Government to dispel these doubtsDraghi: There are questions about implementation: will and capacity, up to the Greek Government to dispel these doubts
2.29pm BST2.29pm BST
14:2914:29
How can the European Central Bank be so confident, given that prime minister Alexis Tsipras says he doesn’t believe in the bailout deal?How can the European Central Bank be so confident, given that prime minister Alexis Tsipras says he doesn’t believe in the bailout deal?
Draghi knocks this one out of the ground, in a manner that would have been applauded at the other ECB.Draghi knocks this one out of the ground, in a manner that would have been applauded at the other ECB.
Do you really want us taking decisions based on political uncertainty? Or raising doubts about a government’s ability to implement its decisions? No, we follow our mandate.Do you really want us taking decisions based on political uncertainty? Or raising doubts about a government’s ability to implement its decisions? No, we follow our mandate.