Wall Street Journal
February 1, 2012
The possible involvement of the European Central Bank in Greece's second bailout package continues to be under discussion among senior euro-zone and International Monetary Fund officials, who see a need for more resources to provide Athens with sufficient debt relief.
The ECB's role is being actively discussed this week, said people with direct knowledge of the matter. The object is finding a way to cover a funding gap of roughly €15 billion ($19.62 billion) even after a proposed deal calling on Greece's private-sector bond holders to write down half of their Greek debt holdings, spelling €100 billion in debt relief for Athens.
So far the ECB has refused to countenance participating in Greece's debt restructuring at all, afraid of laying itself open to charges of financing state deficits, something that is expressly forbidden by its charter.
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