Commodity Trade Mantra

Posts Tagged ‘Bank of Greece’

Greece Just Lost Control Of Its Banks - Why Deposit Haircuts Are Imminent

One of the preconditions imposed on Greece for a deal is that it signs into law European rules that would put eurozone authorities at ECB & Brussels in charge of identifying & closing or breaking up sick banks. There will be absolutely nothing Greece can do to avoid it as on Wednesday, the government will vote to hand over its sovereignty to Europe for absolutely nothing in return.

The Euro Crisis: Solvency of the ECB is at Stake

How the Greek crisis is a euro crisis: ECB itself now needs refinancing as losses that ECB faces from Greece alone are about €189.3bn – twice its equity capital & reserves of €98.5bn. Given the likely collapse of the Greek banking system & default on its debt, collateral held by ECB are more or less worthless. Upsetting of the Greek applecart risks destabilising the euro itself.

Is Greece About To "Lose" Its Gold Again?

What everyone appears to be forgetting is a nuanced clause buried deep in the term sheet of the second Greek bailout: a bailout whose terms will be ultimately reneged upon if & when Greece defaults on its debt. Greece’s lenders will have the right to seize the gold reserves in the Bank of Greece under the terms of the new deal.

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