Greece is insolvent but illiquid.

Author (Person) ,
Series Title
Series Details 18 June 2015
Publication Date June 2015
Content Type

In a new CEPS Commentary, Paul De Grauwe argues that the Greek government is solvent but is trapped in a liquidity dilemma in which cannot find liquidity because markets believe it cannot find liquidity. He then explores the role of the European Central Bank in this self-fulfilling problem and ask specifically whether its outright monetary transactions (OMT) programme, introduced in September 2012, should be used to ease the constraints on Greece.

Source Link
Countries / Regions ,