MacroPolis

In an interview with Naftemporiki daily on October 14, Greek Finance Minister Yannis Stournaras identified two key sources that could reduce – if not eliminate – the emerging funding gap as of July 2014, currently estimated at 10.5 – 11.0 billion euros. Both solutions involve rolling over of Greek government bonds (GGBs) that mature in 2014 with a total nominal value of circa 15 billion. The paper is held by Greek banks (4.47 billion) and the European Central Bank (ECB) as well as National Central Banks (NCBs).

A few hours after Stournaras’s comments were published and on the sidelines of Monday's Eurogroup meeting, ECB executive board member Joerg Asmussen rejected any idea of rolling over the central bank’s GGB holdings. “We must find a way to close Greece’s...