ECB to decide on waiver for Greek bonds after DSA, Draghi says

The European Central Bank (ECB) will decide whether to extend a waiver on Greek bonds after performing its own debt sustainability assessment (DSA), the bank’s governor Mario Draghi said on Monday.

Speaking in the European Parliament’s economic and monetary commission and replying to questions by Greek Eurodeputies George Kyrtsos (New Democracy) and Notis Marias (Independent) on whether the ECB will continue accepting Greek bonds as collateral, the European central banker said that in order for the waiver to be continued after the end of the Greek adjustment programme in August 20, there must be a positive assessment on Greek debt sustainability.

Draghi said the ECB will perform its own DSA, along with a risk management assessment, after national parliaments ratified the latest decision of a Eurogroup meeting and after the necessary decisions by the ESM board. Draghi noted, however, that the enhanced supervision status offered to Greece for its post-memorandum era does not guarantee the continuation of the waiver but only if a DSA offered a positive assessment.