http://online.wsj.com/article/SB10001424052702304520804576343053520121080.html
"Under the ECB's own narrow interest, there is perhaps no better option than to have the whole of the burden being borne by fiscal authorities—Greek taxpayers and taxpayers of the euro zone," instead of by banks who hold Greek debt, says Sony Kapoor, managing director of Brussels-based think tank Re-Define.
But given the broad political opposition, Mr. Kapoor says, ECB officials have "unfortunately painted themselves into a corner."
Few believe the ECB would cut off Greek banks entirely. But ECB officials maintain a default changes everything, and making an exception for default-rated collateral would put the ECB's balance sheet, and eventually taxpayer money, at risk.
"Under the ECB's own narrow interest, there is perhaps no better option than to have the whole of the burden being borne by fiscal authorities—Greek taxpayers and taxpayers of the euro zone," instead of by banks who hold Greek debt, says Sony Kapoor, managing director of Brussels-based think tank Re-Define.
But given the broad political opposition, Mr. Kapoor says, ECB officials have "unfortunately painted themselves into a corner."
Few believe the ECB would cut off Greek banks entirely. But ECB officials maintain a default changes everything, and making an exception for default-rated collateral would put the ECB's balance sheet, and eventually taxpayer money, at risk.
No comments:
Post a Comment