IPFS News Link • Economy - International
Meanwhile, Greece Is Quietly Printing Billions Of Euros
• http://www.zerohedge.com, by Tyler DurdenThe combined €2.9 billion in ELA cap increases 'generously' bestowed upon the flailing Greek banking sector by the ECB last week looks to have been barely enough to keep things from "ending very differently" (to quote Kathimerini) at the ATMs on Friday.
But perhaps more importantly from a big picture perspective, Greece may have already breached the upper limit of its borrowing base. JPM calculates Greek banks' eligible collateral at €121 billion (€38 billion in EFSF bonds €8 billion in government securities, and €75 billion in "credit claims"). With Friday's ELA increase, the country's total borrowings (that's OMO plus ELA) amount to some €125 bilion. Why would the ECB allow this? Because it knows the breach will be promptly limited or reversed on Monday, or there will be a deal.




