Greece Tax market today.

 

27.05.2015

Cut in exposure of Greek assets to avoid fallout.

 

The central banks of Albania, Bulgaria, Cyprus, Romania, Serbia, Turkey and the Former Yugoslav Republic of Macedonia have demanded Greek banks’ subsidiaries minimize their exposure to Greek bonds, loans, treasury bills, and deposits, should the talks between Athens and its international creditors fail. The central banks are concerned that diminishing Greek assets may turn poisonous should there be a banking crisis in Greece. Bank of Greece sources said the banks have not yet exhausted the above limit and a “safety cushion” of about 3.0 billion euros remains. The European Central Bank (ECB) will convene again next week to reappraise the situation concerning Greek banks.

 

Deposits Outflow from Greek Banks.

 

Deposits outflow from Greek banks continued in April, reaching a total of 7 billion euros, according to Bloomberg. However, the European Central Bank (ECB) increased its emergency liquidity assistance (ELA) in order to support the Greek banks. Now Greece needs to turn its promises into political actions to satisfy its creditors and access the finance aid, or otherwise the country is in danger of running out of money in the coming weeks. Monday’s meeting also opened the door to partial payments from 7.2 billion euros remaining in Greece’s rescue program. Dutch Finance Minister Jeroen Dijsselbloem, who leads the euro-area Ministers’ group, said funds could be disbursed as Prime Minister Alexis Tsipras’ government passes pieces of economic legislation.