Greece's Target2 liabilities began increasing, after relatively low previous levels, in November 2008. Thus, that's the point in time when private lenders were beginning to contain their Greek exposures.
In November 2011, Target2 liabilities peaked at 109 BEUR and they remained above 100 BEUR until Noveber 2012. Subsequently they declined, reflecting increasing confidence in Greece on the part of private investors. In June 2014, Target2 liabilities hit a miraculous low of 30 BEUR!
And now, less than 1 year later, Target2 liabilities are back to 91 BEUR.
What a difference a year makes!
In November 2011, Target2 liabilities peaked at 109 BEUR and they remained above 100 BEUR until Noveber 2012. Subsequently they declined, reflecting increasing confidence in Greece on the part of private investors. In June 2014, Target2 liabilities hit a miraculous low of 30 BEUR!
And now, less than 1 year later, Target2 liabilities are back to 91 BEUR.
What a difference a year makes!
>"Subsequently they declined, reflecting increasing confidence in Greece on the part of private investors."
ReplyDeleteI have some doubts about this correlation, could you please explain? Thx!
H.Trickler
I think what you are describing is ELA and ECB liquidity flaxuatiations, private investor exposure in Greece like inter-banking loans is virtualy non-existent.
ReplyDeleteGrexit May 9?:
ReplyDeletehttp://seekingalpha.com/article/3077216-is-may-9-the-grexit-date
@AnonymousApril 17, 2015 at 6:33 PM
ReplyDeleteMaybe default, not not yet Grexit.
H.Trickler