Luis de Guindos: The ECB should look at the progress of the Greek economy

The European Central Bank will have to look at Greece’s economic progress when deciding whether to continue lending despite its junk credit rating in the coming days, ECB Vice President Luis de Guindos said.

The ECB has accepted Greek bonds as collateral and even bought some as part of its latest program to boost economies, providing vital support to one of the eurozone’s weakest economies.

The so-called waiver is expected to expire in June, but the ECB has already stated that it will continue to buy Greek bonds as it invests its revenues from the Pandemic Emergency Program (PEPP) and is expected to continue to accept them as collateral.

De Guindos said a decision would be made soon.

“My personal view is that we have seen a great improvement in the Greek economy, both in terms of structural reforms, such as fiscal consolidation, and this has been reflected in the decisions of rating agencies,” De Guindos said.

“It’s something we need to take into account, and keep in mind that the Greek economy has made great progress. It is much more resilient than it was two or three years ago,” he added.

Source: Capital

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