Market news
10.06.2011, 12:35

ECB STARK: ECB not against private sector involvement in Greece

  • Personally favor private sector involvement in Greece;
  • Private sector involvement must be purely voluntary;
  • Large private sector involvement w/out coercion unlikely;
  • PSI not needed economically, may be good politically;
  • Must end fruitless discussions, focus on program;
  • We don't participate in any greek bailout negotiations;
  • Won't accept greek debt after greek credit event;
  • Current ideas implicitly consider an ecb involvement;
  • 2012 hicp are staff fcast, gc sees upside infl risks;
  • Staff fcst based on assumption of rising s-term rates;
  • Exit from fixed rate full allot still under discussion;
  • Must address addicted banks problem, will take some months;
  • Liquidity support does not prevent price stab monpol;
  • ECB balance sheet risk is manageable

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