The FinMin of Grece announced that Greece will increase the government guarantees offered on banks to further enhance the domestic system's liquidity.
By doing this, the total government backed liquidity program will reach EUR 55bn bringing the entire support plan (including special government bonds and state preference shares) to EUR 68bn or c. 30% of GDP, still below levels offered by other EU-members in the past.
It's definitely to the system's benefit to have such a tool available on the sidelines should it be required. FinMIn also presented yesterday the progress so far over the countey's stabilization plan and confirmed that funding in the context of the support plan will progress smoothly and no new measures are in the agenda.
He also confirmed that fiscal adjustment progress is in line with expectations, for the first time he said that budget revenues for the year might be short of targets, but better cost containment will compensate and deficit-reduction is likely to exceed targets (8.1% of GDP). FinMin highlighted that tax evasion efforts are successful and quantified accordingly while medium-term priorities do not surprise.