Daily Archives: January 26, 2012

Ralph Atkins

The European Central Bank is maintaining its silence over its Greek bond holdings, but the debates continue behind closed doors. On one point its governing council appears more-or-less united: the ECB cannot voluntarily accept losses on its holdings, on which it spent an estimated €35bn to €40bn. To do so would breach the European Union ban on monetary financing – central bank funding of governments. Germany’s Bundesbank has said as much publicly.

More interesting is what the ECB would do if the Greek government sought to impose losses.