Wednesday’s meeting was the Frankfurt-based bank’s first since bailout talks between Athens and its worldwide lenders collapsed at the weekend and the government announced a referendum on creditors’ latest cash-for-reform proposals.
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“It would provide the Bulgarian central bank with the necessary euro liquidity to deal with a possible bank-run against Greek-owned banks, which is probable in the event of a “No” vote in Sunday’s Greek referendum”, Efstathiou said in a research note.
“It is hard to say how the markets will react if an agreement is not reached, and this is important when talking about consequences to Greece“, said Constancio.
Greek Prime Minister Alexis Tsipras has called a referendum for tomorrow to asks Greeks whether they are willing to swallow tougher austerity measures in return for bail-out funds from its creditors, the global Monetary Fund, the European Commission and the ECB.
Tightening the ELA would have forced Greece to lower its 60 euros-a-day ($66) limit on cash withdrawals.
The depositor “haircut” would be a function of the staggered ELA haircut that the European Central Bank could impose to escalate the rhetoric between the two sides, and could take place with as little as a 10% increase in the ELA collateral haircut from its current 50% level.
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“There are no such scenarios at any Greek bank, not even as an exercise on paper”, Katseli said.
