Greek economy’s vaccines: QE and cash buffer

Greece's biggest weapon against the pandemic-induced crisis is none other than its own cash reserves, which can both finance its support measures and signal to the market that the country has no liquidity problems. It also has a great ally in the European Central Bank and its bond-buying program, but analysts who spoke to Kathimerini agree that the cash safety cushion is making the difference thanks to Athens' wise use of it.

"The ECB is indeed Greece's (and not only Greece's) main buffer during the pandemic crisis," says Ioannis Sokos, Director of Fixed Income Research at Deutsche Bank.

"In a year where Greece had to increase its fiscal spending to support the economy, hence leading to larger borrowing needs which could have depleted Greece's cash buffer, the amount of ECB purchases managed to exceed Greek government bond issuance volumes," he comments.

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