Bloomberg reports that
Bulgaria, which is not a Euro member but backs its currency with Euro
reserves, has just been allowed to borrow from the ECB at the same rate
as Euro members, thus enabling it to firewall its banks from Greek
contagion.
This is a privilege normally only accorded to Euro members – and it has been WITHDRAWN from Greece.
If this is true, then Bulgaria (non-Euro member) can obtain Euros from the ECB while Greece (Euro member) cannot. It is hard to see what benefit Greece’s Euro membership confers, apart from redistribution of seigniorage receipts.
by Frances Coppola
source: http://www.forbes.com/sites/francescoppola/2015/07/03/the-road-to-grexit/
This is a privilege normally only accorded to Euro members – and it has been WITHDRAWN from Greece.
If this is true, then Bulgaria (non-Euro member) can obtain Euros from the ECB while Greece (Euro member) cannot. It is hard to see what benefit Greece’s Euro membership confers, apart from redistribution of seigniorage receipts.
by Frances Coppola
source: http://www.forbes.com/sites/francescoppola/2015/07/03/the-road-to-grexit/
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