Dear Greek, take the Euronotes and run
Update (20:56 CET): Rumor has it that the ECB has 59,5 billion in Emergency Liquidity Assitance available. But, to be credible, it should be willing to provide backing for every single Greek deposit Euro.
The ECB is preparing a ‘Cyprus’ for Greece. So, dear Greek, change your deposit money for cash.
1) According to the ECB the European system of central banks still guarantees the 1:1 exchange rate of Greek bank deposit money and Cash. But the Eurosystem is preparing for a ‘Cyprus scenario’, i.e. it wants to have the possibility to renege on its promise of a guaranteed 1:1 exchange rate between Euro notes and Greek deposit money: the first line of funding of Greek banks has been cut loose (emphasis added)
“4 February 2015 – Eligibility of Greek bonds used as collateral in Eurosystem monetary policy operations
- ECB’s Governing Council lifts current waiver of minimum credit rating requirements for marketable instruments issued or guaranteed by the Hellenic Republic
- Suspension is in line with existing Eurosystem rules, since it is currently not possible to assume a successful conclusion of the programme review
- Suspension has no impact on counterparty status of Greek financial institutions
- Liquidity needs of affected Eurosystem counterparties can be satisfied by the relevant national central bank, in line with Eurosystem rules”