Goldman Sachs Claims That ECB Will Provide Greek Banks With 21 Billion Euros

Goldman Sachs claims that the European Central Bank (ECB) is getting ready to provide Greek banks with approximately 21 billion euros worth of cheap funding by giving them the ability to use loans worth 139 billion euros as guarantee.

The New York Investment Bank said it arrived at this conclusion after evaluation the ECB’s recent announcements regarding 669 billion euros worth of funding, with Goldman Sachs arguing that the regional Eurozone banks could secure 342 billion euros worth of low-interest loans.

According to the scenario, Greek banks would receive an estimated 21 billion euros, since the ECB’s methods provide loans worth 34.5% of their assets, which in this case are 139 billion euros worth of loans.

An article in To Vima, which published this story, claims that the ECB’s funding towards Greek banks dropped by 8.18 billion euros to 50.66 billion euros in May, while emergency funding provided by the Bank of Greece via the ELA dropped by 3.12 billion euros for a total of 3.6 billion euros.