European Central Bank

No further comment from Stournaras on Schaeuble talk of third loan package

Finance Minister Yannis Stournaras refused to make on Minday any further comment on his German counterpart Wolfgang Schaeuble’s claim that Greece would need more loans.

Stournaras was asked about the German minister’s comments when he left a meeting with Prime Minister Antonis Samaras at the Maximos Mansion. “We put out a statement yesterday,” said Stournaras.

Greek PMI at 51 points in May as eurozone manufacturing slows

Greece’s manufacturing remained in growth territory in May, although the Purchasing Managers’ Index (PMI) fell slightly to 51 points, according to London-based Markit.

The PMI was at 51.1 in April. “The PMI remained on the right side of the 50.0 mark in May, signalling steady albeit unspectacular growth at factories,” said Markit analyst Phil Smith.

Finance Ministry insists Greece is fully funded until mid-2015

Greece’s Finance Ministry has insisted that the country is fully funded until the summer of 2015 in the wake of comments by German Finance Minister Wolfgang Schaeuble that a new loan package of less than 10 billion euros would be needed.

“As is known and was accepted at the last Eurogroup, Greece’s funding needs are covered until mid-2015,” the Finance Ministry said on Sunday.

European Central Bank ‘finally ready’ to act to fight deflation

Financial markets are betting on an interest rate cut from the European Central Bank next week as low inflation, the strong euro and anaemic credit finally spur it into action.

The ECB has held its key interest rates steady at their current all-time lows since November, repeatedly promising to act if necessary to avert deflation in the 18 countries that share the euro.

Eurozone banks increase government bond holdings in April, ECB reports

Eurozone banks mainly stocked up on sovereign debt in April, data from the European Central Bank showed on Wednesday.

Italian banks bought 9.4 billion euro in government debt in April after a 2.1 billion increase in March, marking the largest monthly rise since June last year.