RedNotebook: On ECB' s decision to cancel the acceptance of Greek bonds

Painting by Kyriakos Katzoyrakis Painting by Kyriakos Katzoyrakis
Yesterday (Wednesday) night the Board of the European Central Bank announced that it would no longer (starting on February 12, 2015) accept Greek government bonds as collateral for lending money to commercial banks. This decision is attributed to the currently unpredictable status of the deliberations regarding the bailout program. 

This announcement came just few hours before the scheduled meeting of the Greek finance minister Yanis Varoufakis with Wolfgang Schaeuble and poses a direct challenge to the Greek government.
On a financial level, according to the ECB and sources within the National Bank of Greece, there are no foreseeable consequences on market liquidity. The gap created by the ECB decision will be covered by the ELA (Emergency Liquidity Assistance) mechanism.

On a political level, the ECB decision obliges the Greek banks to largely resort to the ELA much earlier than the anticipated date of March 1, 2015. This means that during February the raise of liquidity through ELA will explode to more than 40 billion euros, whereas currently it is around 5 billion euros.

To put things in perspective in 2012 Greek banks had raised a total amount of 124 billion euros through the ELA mechanism.
The ECB decision reflects Berlin’s intransigence and reveals that this stance will remain until February 12, which is the day of the European Union Summit. On the other hand, this decision hasn’t succeeded in breaking the confidence of the Greek government. Alexis Tsipras has already rejected Angela Merkel's demands and has declared to Mario Draghi, President of the ECB, that he will respect the ruling and decision of the Greek people as they were expressed in the general elections of January 25, 2015.

This is the time for a mass popular mobilization!

The Greek people will demonstrate that the stance of the Greek government reflects their desires and beliefs, their will to challenge the straightjacket of austerity and repression.

In this negotiation the greek government is not alone. The people of Greece and the people of Europe unite their voices against blackmailing threats and ultimatums! 

Analyze Greece and Red Notebook will provide coverage of the
popular mobilization scheduled for today Thursday February 5, 2015 under the slogan “No blackmail! Dignity now!

  • Translated by: Iraklis Oikonomou
  • The original text was first published on: Written for AnalyzeGreece!