tag:blogger.com,1999:blog-36227136.post3075025372526344877..comments2024-01-16T08:40:53.682+00:00Comments on <a href="http://www.openeurope.org.uk">Open Europe</a>: Delaying tactics are only increasing the costs of the eurozone crisisOEhttp://www.blogger.com/profile/00556463374230498875noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-36227136.post-3483558091420709562011-06-22T16:57:06.705+01:002011-06-22T16:57:06.705+01:00Thanks for the response Zocco. We do take account ...Thanks for the response Zocco. We do take account of this in our paper on the ECB (http://www.openeurope.org.uk/research/ecbandtheeuro.pdf). We expect that the bonds which the ECB bought directly have been done so at a discount of around 30% (keeping in mind that they've been bought at various prices over the past year not just the current price). So the actual hit from 50% restructuring would be 20%. The ECB also has significant exposure through the collateral which it has taken on from its liquidity provision, but again with some buffer. You should check out the ECB paper in the link above, all of the potential costs to the ECB from a Greek default are laid out there. The methodology also explains our approach to the discounts.Open Europe blog teamhttps://www.blogger.com/profile/14476470353790515912noreply@blogger.comtag:blogger.com,1999:blog-36227136.post-39802089661019093522011-06-22T16:23:30.705+01:002011-06-22T16:23:30.705+01:00Surely the ECB are buying up Greek debt at a big d...Surely the ECB are buying up Greek debt at a big discount( 40%?) so if there is a 50% haircut they are only looking at a 10% loss - not 50%. Same for other organisations. How much of the total debt is already heavily discounted?Zocconoreply@blogger.com