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Thread: Greece preparing for the future.

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    Politics.ie Member Dreaded_Estate's Avatar
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    Default Greece preparing for the future, Ireland?

    Greece has asked its banks to prepare for the withdrawal of the unlimited ECB funding.

    Greek Bond Spread Is Widest in 4 Months on Finances (Update2) - Bloomberg.com
    Greece’s central bank asked domestic lenders to outline potential funding sources in coming months as the European Central Bank begins to tighten the liquidity it provides to Europe’s banking system, Euro2day reported.

    In a letter to the institutions, the Athens-based central bank said Greek lenders as a whole had borrowed amounts that were proportionally greater than other countries in the 16- nation euro area, the Web site said, without saying where it got the information. Greek banks have borrowed a total of 42 billion euros ($63 billion) of the 570 billion euros the ECB has pumped into the system, according to Euro2day.
    I wonder if the government has planned how NAMA is going to cope once the ECB withdraws the unlimited repos.
    It is going to quite tricky to roll over €54bn when these facilities have been withdrawn.

    “There’s uncertainty about the ECB talking about exit strategies, and this is putting pressure on the weaker countries and that’s mostly Greece and Ireland at the moment,” said Michiel de Bruin, head of European government bonds at F&C Asset Management in Amsterdam. “There’s also uncertainty about next year’s supply, liquidity drying up toward the end of the year, and now we are seeing volatility returning to the market.
    Last edited by Dreaded_Estate; 31st December 2009 at 08:08 PM.

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    Quote Originally Posted by Dreaded_Estate View Post
    Greece has asked its banks to prepare for the withdrawal of the unlimited ECB funding.

    Greek Bond Spread Is Widest in 4 Months on Finances (Update2) - Bloomberg.com


    I wonder if the government has planned how NAMA is going to cope once the ECB withdraws the unlimited repos.
    It is going to quite tricky to roll over 54bn when these facilities have been withdrawn.

    Oh but isn't the ECB backing NAMA...giving us a charitable digout...printing money to give it to the Irish etc. etc. etc.

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    Moderator Conor's Avatar
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    Quote Originally Posted by Dreaded_Estate View Post
    I wonder if the government has planned how NAMA is going to cope once the ECB withdraws the unlimited repos.
    It'll be the bank's problem then, not NAMA's.

    Quote Originally Posted by Dreaded_Estate View Post
    It is going to quite tricky to roll over 54bn when these facilities have been withdrawn.
    Not tricky, just dearer. Presumably, this extra cost will be passed on to borrowers, as will subsequent base rate increases. 2010 will be a tight time for anyone who's overextended themselves on credit. Let's hope there's not too many around in that unfortunate position.
    Nothing will motivate the lazy / apathetic / Americanised / west-British types to embrace their culture and the Irish language.

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    Quote Originally Posted by Conor View Post
    It'll be the bank's problem then, not NAMA's.


    Not tricky, just dearer. Presumably, this extra cost will be passed on to borrowers, as will subsequent base rate increases. 2010 will be a tight time for anyone who's overextended themselves on credit. Let's hope there's not too many around in that unfortunate position.
    The Irish are the most indebted population in the EU in terms of personal debt, by quite a long way. For people who think that if they have no debt, increasing the cost of repaying this debt won't affect them, its like someone on the Titanic thinking they would be OK because they were good at the breast stroke.

    Martin Wolf rightly suggested last week that Ireland may well be facing default and that the personal debts are unlikely to be repayable in full.

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    What secrets are our masters keeping from us?

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    Politics.ie Member Dreaded_Estate's Avatar
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    Quote Originally Posted by Conor View Post
    It'll be the bank's problem then, not NAMA's.


    Not tricky, just dearer. Presumably, this extra cost will be passed on to borrowers, as will subsequent base rate increases. 2010 will be a tight time for anyone who's overextended themselves on credit. Let's hope there's not too many around in that unfortunate position.
    The Irish government has about 15bn in short term bills outstanding.

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    Quote Originally Posted by Dreaded_Estate View Post
    The Irish government has about 15bn in short term bills outstanding.
    What're you telling me for?
    Nothing will motivate the lazy / apathetic / Americanised / west-British types to embrace their culture and the Irish language.

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    Politics.ie Member cyberianpan's Avatar
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    Quote Originally Posted by Conor View Post
    It'll be the bank's problem then, not NAMA's.


    Aaaaaahhhhhh now

    The Nama Cashflows
    The ECB is printing money & lending to Ireland via the banks
    What can the ECB do for Ireland when it has to raise interest rates ?


    cYp
    "Yawn , am I alive yet ?"

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    Nothing will motivate the lazy / apathetic / Americanised / west-British types to embrace their culture and the Irish language.

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    Politics.ie Member cyberianpan's Avatar
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    Quote Originally Posted by Conor View Post
    You'll have to elaborate.
    The banks, including non Irish banks, have been buying huge quantities of short term Irish Government Debt ... using liquidity monies(money printed from air) from the ECB...

    The ECB of course can't print money and use it to buy Irish Government Debt as that breaks the rules

    The Greeks have been bold , bold boys who won't do what the ECB/EC tell them

    The ECB/EC shows more forebearance with Ireland, and from above threads you can see the rudiments of a two-track monetary policy

    cYp
    "Yawn , am I alive yet ?"

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