News Greece ECB: "No Grexit possibility, even with a belated agreement"

ECB: "No Grexit possibility, even with a belated agreement"

Vice-president of the European Central Bank (ECB), Vítor Constâncio, has claimed in his interview with Bloomberg that a Grexit scenario is much further away, even if there is still a long way for an agreement between Greece and its creditors. 
 
«We believe that there is no a Grexit scenario to talk about, even if an agreement is still far away», Constâncio said, adding, however, that a turbulence is not to be excluded.   
 
When asked about ECB’s possible react in a Grexit case in early June, the central banker appeared to be optimistic, telling that Greek banks would remain creditworthy in order to receive financial aid from the creditors.
 
We have to preserve bank liquidity 
 
"If this were to happen, an analysis of banks’ situation should be brought out again, since they could suffer a further value loss due to their exposure to Greece’s public sector. But, the former analysis has indicated that the Greek banks can withstand a large reduction on their value because of their exposure to the Greek public sector, "Constâncio said. 
 
“What we have to recall is that the value of Greek government bonds, held by Greek banks, has considerably decreased due to a previous rescheduling of the debt. In any case, if such a case occurred, the analysis must be re-examined, since our main goal is to maintain bank liquidity, ensuring at the same time, that banks are actually trustworthy. ”
 
Source: Sigmalive 
 
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