Eurobank Ergasias has broken the months-long exclusion of Greek banks from money markets as it took advantage of the general improvement of the climate regarding Greece in the last couple of months to reach deals for repurchase agreements (repos) worth 7.5 billion euros with international lenders.
The local lender used the bonds it has received from the European Financial Stability Facility (EFSF) in the context of its recapitalization, as well as other bonds it retains in its portfolio as collateral. Therefore, combined with the return of deposits, Eurobank has managed to reduce its dependence on the European Central Bank and the emergency liquidity assistance (ELA) mechanism of the Bank of Greece by 11 billion euros.
Speaking to Kathimerini, Eurobank’s alternate chief executive officer Nikolaos Karamouzis stressed that “our primary target was and remains to reduce our funding from the Eurosystem. In this context we have swiftly proceeded to the full use of the new potential created by the stabilization of economic conditions and the improvement of the climate in the country.”
Other major banks are set to follow Eurobank’s example very soon.