Friday 15 April 2011

The Greek Banking System (Kindinologies 4)

EuroIntelligence reports alarming speculation:

15.04.2011
"Lorenzo Bini-Smaghi, the most prolific campaigner against default, told il Sole24 ore that the ECB had carried out an analysis on the potential impact of a Greek debt restructuring, and found it would imply the failure of a large part of the Greek banking system, as the Greek banks hold a large portion of the Greek sovereign debt. (Another reason is that Greeks would transfer all their deposit to foreign banks, a process that is already partially under way). At the point the Greek banks would no longer have access to ECB liquidity, and would have to end their support for the corporate sector. He said that since Greece does not have a primary balance, a default at this time would lead to the cessation of pension and other social payments. The Greek economy would collapse, with devastating economic and social consequences. He said the other countries should stop pushing Greece into a catastrophe".

The Government response?

(Keep Talking Greece)

Costas Simitis says something different in To Vima.

The Daily Telegraph 

Damaging Rumours

The Economist

No comments:

Post a Comment