Speaking today at the economic and monetary affairs committee at the European Parliament in Brussels, ECB president Mario Draghi stated that the sustainability of the Greek debt and the completion of the second assessment are prerequisites for Greece to join the European Central Bank‘s quantitative easing program (QE). Mr. Draghi explained that the sustainability of the Greek debt must be tackled in order for the ECB to buy Greek bonds.
The ECB President noted that in order to make a reliable assessment of debt sustainability, short-term measures must be implemented (which they already have) as well as medium-term measures that are in the process of negotiations between Greece and countries of the eurozone.
In addition, the reliable assessment of the sustainability of Greek debt will be completed during the second review. When this happens, the Governing Council, with absolute independence, will produce its own assessment on the viability of Greek debt, said the ECB president.
“We can be closer to the goal of buying Greek debt if the second review is completed soon, otherwise we can wait,” Draghi said.