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Greece has received 260 billion euros in financial aid since
2010, and its third bailout expires in August. Athens is eager
to show it can stand on its own feet in accessing new money and
this month raised 3 billion euros from a seven-year bond issue.
But some European Union policymakers believe Greece cannot go it
alone without a standby line of credit.
Yannis Stournaras, speaking at an annual meeting of the central
bank's shareholders, said a precautionary support program would
help Greece's funding process.
"International experience has shown that a test foray into the
markets to create a safety net of liquidity before the end of
the program creates a climate of confidence and paves the way
for the country to exit the program," Stournaras said.
"However, a precautionary support program should be considered
additionally," Stournaras added. It would reduce Greece's
borrowing costs and would give the government and the banks
access to credit after the bailout ends, he said.
The government is keen to avoid such a precautionary credit line
as it would likely come with conditions attached, a difficult
pill to swallow after eight years of austerity.
"The possibility of using a preventative support program...
should not be dramatized, Stournaras said, "as European
mechanisms were created to be used if there is need".
(Reporting by George Georgiopoulos; Writing by Karolina Tagaris;
Editing by Gareth Jones)
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