Four key takes from the ECB's July presser

 
Jessica Morris
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Draghi said Greece needs debt relief (Source: Getty)

1. ECB has hiked ELA to Greece:

Draghi confirmed that the European Central Bank will increase the amount of liquidity assistance available to Greek banks by €900m in one week.

He said that approval of bridge financing, plus the Greek parliament's move to vote in favour of austerity rules outlined by its lenders drove the decision.

2. Draghi defends ECB's record on Greece:

Draghi responded to accusations that the European Central Bank let the Greek people down by saying that the ELA euro system is now Greece's largest depositor with €130bn.

"I find these observations that there wasn't enough liquidity in operation quite unwarranted."

3. Greece needs debt relief:

Draghi said that Greece is clearly in need of some form of debt relief however the real question is how to do this within the European Union's legal framework.

"It’s uncontroversial that debt relief is necessary the issue is what's the best form of debt relief. I think we should focus on this."

4. ECB and IMF will be repaid:

Draghi said he was confident that the European Central Bank and the International Monetary Fund will be repaid by Greece on Monday, when its due to repay €3.5bn.

"All my evidence and information leads me to say we will be repaid," he said.

Additionally, Draghi hinted that a repayment on Monday would pave the way for Greek quantitative easing eligibility.

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