ECB Press Releases Post author By Karl Whelan Post date March 31, 2011 No announcement today of any new ECB facility for the banks. Three different press statements however, this one and this one welcoming the announcement, and this one possibly a preparation for a more substantive movement in ECB policy. Categories In Banking Crisis Tags ECB 9 Comments on ECB Press Releases ← Department of Finance Presentation → Anglo 2010 Annual Report 9 replies on “ECB Press Releases” “marketable debt instruments issued or guaranteed by the Irish government.” Are promissory notes marketable? It seems Enda and Michael are relying on a verbal assurance from Jean Claude that he will not pull the plug – from Prime Time. We relied on the ECB late last year and we all know what happened. The apparent flip flop by Trichet could be to do with Portugal. I suppose their banks would be looking for the same kind of facility in the event he gave an explicit assurance (in writing). “Such a situation of solvency [€24bn injection] is a prerequisite for continued access to Eurosystem refinancing. Against this background, the Eurosystem will continue to provide liquidity to banks in Ireland.” In other words, we kinda put up with your defiance in February but recapitalise the banks now or we take back our financing. The solvency of the state has not been altered one iota, but ECB now kinda likes the bonds more! @ Colm McCarthy It seems the Irish have no monopoly on ad hoccery. @Jagdip You are right. The 24b is a “prerequisite”… This is one condition. I wonder how many more conditions have been imposed for the provision of liquidity, Jagdip, the “prerequisite” etc statement is bull. The ecb actions are self-serving and should not be viewed as a favour to the irish. It isn’t in the ecb’s interests to pull the plug on funding irish banks. I’m goin on the p1ss with Axel Weber … So, where now for the ECB? So it’s going to allow repo on any scrap of paper with a harp on it, while at the same time desperately seeking to unwind its liquidity support. The Economist is shouting even more loudly for debt restructuring: http://www.economist.com/node/18485985?story_id=18485985 I’m inclined to agree that the ducks are finally coming into line. The small peripherals have been quarantined, a clear line has been drawn between them and the bigger ‘vulnerables’ – Italy, Spain and Belgium, the IMF has never been happy with ‘no senior bondholder left behind’, and the core EZ banks should be able to take a hit from the small peripherals. […] But back in March 2011, the ECB unceremoniously dashed any hopes of a medium term facility with its statements in response to the 31st March restructuring announcements. Well, thank God at last that the IMF is making it […] Comments are closed.