“ The author is clearly unaware that ELA is provided by the Bank of Greece and not the ECB.
https://www.ecb.europa.eu/mopo/ela/html/index.en.html
If ELA is unwound the BoG will retain collateral worth approximatively 140 billion ( assuming a 33% haircut of ELA collateral). This is not debt, it is an asset of the Hellenic Republic.
There is currently no provision for clearing the Target 2 balances. This is a debt of the BoG and the Hellenic Republic. However it is irredeemable.
There are a number of other inaccuracies and short-cuts in the article but it is really not worth going into further detail.
There are much simpler and more valid arguments to criticise the Greek government, but pretending to give a technically sophisticated analysis of a complex matter just to bamboozle the reader is pure scaremongering. Not worth the standing of your publication and the university that the author has been part of. ”
