Greek banks will be able to draw additional liquidity from the European Central Bank after Frankfurt issued a guideline on Friday that revises the “haircut” applying to securities issued or fully guaranteed by the Greek state.
The ECB announced that the revision of the haircut on the valuation of Greek securities, which the lender accepts as collateral for the supply of cash to Greek banks, was decided on the basis of the general improvement in market conditions for the country’s securities.
Banks estimate that this decision will allow them to draw additional liquidity amounting to 10-12 billion euros without having to submit any new collateral to the ECB.
Meanwhile banks are following developments in the government’s talks with its creditors, but they are also setting their priorities for the post-stress test era and the country’s return to growth. The channeling of at least 10 billion euros of funding to households and corporations in 2015, the efficient handling of nonperforming loans and a return to profit are lenders’ three main objectives, provided of course that the country continues its smooth course.