Eurogroup

The decision of the European Central Bank to make an exception to the rule and offer Greece a waiver that will allow Greek paper though still not investment grade to be used as collateral for Greek banks to have access to ECB cash is an important step forward for the embattled Greek economy.

Greek Finance Minister Christos Staikouras was upbeat Wednesday that remaining differences between eurozone governments regarding a trillion euro package to support the economy against the coronavirus pandemic would be bridged by Thursday.

The chairman of eurozone finance ministers Mario Centeno said on Wednesday he was suspending talks on half a trillion euro package to support the economy against the coronavirus epidemic until Thursday, to bridge divisions over its elements.

Markets and all EU member-states, especially those in Southern Europe which like Greece seek some form of mutualisation of debt have been  focusing like a laser beam on today's Eurogroup meeting and analysts expect joint action to help prop up the economies of member states - possibly including even so-called coronabonds.

Eurozone finance ministers hope to agree on Tuesday on half a trillion euros worth of economic aid to finance recovery from the coronavirus, a discussion that has sown divisions as the bloc struggles with the outbreak.

In an article published in Tuesday's Kathimerini, Finance Minister Christos Staikouras calls on his colleagues in the Eurogroup council of eurozone finance ministers to show solidarity as they convene on the same day and approve "a catalytic move that will offer a strong injection of liquidity to the economy."

Bank of Greece Governor Yannis Stournaras on Wednesday spoke openly on Bloomberg in favor of a so-called "corona bond," warning that unless joint fiscal action is taken Europe will face a new debt crisis.

Greece's benchmark 10-year bond yield tumbled by about 50 percent on Thursday, returning to the 2 percent level from 4.1 percentage points previously, after the key move by the European Central Bank to incorporate Greece in its emergency bond-buying program.

Since the second week of March, the Greek government has been attempting to delay the spread of the virus by shutting down most economic activity, ordering the closure of all shops apart from supermarkets, bakeries, petrol stations and pharmacies.

Greece has secured full fiscal flexibility in the battle to ease the blow to its economy from the coronavirus outbreak as the Eurogroup conference call that Finance Minister Christos Staikouras (right) participated in on Monday decided to allow all eurozone member-states to take every necessary measure to tackle this growing emergency.