The main news from the ECB meeting was confirmation that ELA to Greece was increased by 900mln euros. He said this fully meets the immediate needs as requested by the Greek central bank but adjusted for a one week period. Draghi notes that the total Eurosystem exposure to Greece is 130 bln euro, while the deposit base is presently about 120 bln euros.
Draghi argues that no one really doubts that there is a need for debt relief for Greece. The question, he says, is how is it best delivered within the legal and institutional framework of the monetary union. He does support making the union more effective by continuing the integration process.
European bonds yields have not responded much to Draghi’s press conference. European stocks have extended their earlier gains. The euro is chopping around $1.0850-$1.0900.