European Central Bank President Mario Draghi on Monday lowered expectations that Greece could participate in the central bank's quantitative easing program (QE) after its adjustment program expires in August, saying a debt sustainability analysis will need to be completed before the country's bonds are included.
In order to be part of the asset purchases program, Greece either needs a so-called waiver or a positive assessment of debt sustainability (DSA), Draghi said, speaking at the European Parliament’s committee on economic affairs.
The enhanced surveillance agreed between Greece and its creditors at the last Eurogroup in late June does not warrant a waiver, he explained.
Before doing a DSA, the ECB first have to wait for EU parliaments to approve the decisions of the last Eurogroup and for the decision of the European Financial Stability Facility's (EFSF) board, he added.
ECB officials have repeatedly said in the past that the waiver would remain only if Greece agreed to a precautionary credit line. After its program expires, the waiver may be withdrawn.