The head of the European Central Bank, Mario Draghi, expressed cautious optimism on Monday that Greece would be able to benefit from ECB money printing and get normal access to central bank funds, but urged Athens to honor its debts.
Much of Greece’s funding requirements and those of its banks are, in the meantime, being met by the ECB.
Draghi signaled that there was scope to normalize the manner in which such funding was provided.
“There will be time… when we will be able to reinstate the waiver, we will be able to do QE (quantitative easing) to Greece,” he said.
“Several conditions need to be satisfied and they are not there yet. But we are confident they will be if this process of policy dialogue is being reconstructed.”
Draghi’s conciliatory tone was tempered, however, by a stern warning for Athens.
“Greece and its international partners should now focus on setting the conditions for a successful conclusion of the review,” he said, referring to the reform-for-aid program that was all but scrapped by the new leftist Greek government.
“The government of Greece should commit to fully honor its debt obligations to all its creditors and to premise all future policies on this commitment.”