ECB needs ‘more clarity’ on debt relief to buy Greek bonds

The European Central Bank needs more clarity on what kind of debt relief Greece will get from its international creditors if it is to buy Greek government bonds as part of its monetary stimulus program, a source close to the matter said.

Eurozone governments threw Greece another 11th-hour credit lifeline on Thursday but merely sketched possible ways to make the country's debt burden more sustainable.

"It’s a very positive step in the right direction but you need to see more clarity on debt to include Greece in the PSPP," the source said. "We need more specificity on the debt measure."

The ECB has repeatedly said it would need to deem Greek debt sustainable over the long term to include it in its 2.3 trillion euro bond buying program but this would require relatively specific commitments on easing this debt pile. [Reuters]