ECB stimulus to Greece no longer crucial

December 6, 2017 11:52 AM

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ECB stimulus to Greece no longer crucial

Mubasher: The Greek government no longer views the bond-buying programme carried out by the European Central Bank (ECB) as crucial for its economic recovery, according to its prime minister.

"I think we will join the [quantitative easing (QE)] programme but it's not so crucial for us, as we believed before," Alexis Tsipras told CNBC exclusively late Tuesday.

Greece was ineligible to apply for the ECB’s bond-buying programme as its debt does not have an investment grade rating from global credit rating agencies.

Should Greece be successful in concluding the third bailout programme in the summer and restructure its debt, credit rating agencies may change their view of the debt-ridden European state.

Tsipras said previously that the ECB’s stimulus programme would support Greece’s economic recovery as it would “give confidence to investors to shore up their investments in the southern European country,” according to CNBC.

Speaking on the sidelines of a conference in Athens, Tsipras told CNBC that the Greek government’s "Estimation before the second [bailout] review was that QE was key in order to access the market, but it wasn't true. The developments showed that it wasn't a precondition."

"There's no, for us, goal to access QE before the end of the programme," Tsipras added.

In 2017, Greece entered international financial markets twice and nabbed significant interest from investors in both issuances.

Markets forecast that the government will conduct at least two more market operations before its current bailout is due to end in 2018.


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