The next key takeaway from Draghi’s press conference involves Greece’s QE eligibility. Once a waiver is in place, Draghi said that three additional conditions should be met.
The first is that “during reviews in the context of financial assistance programmes for a euro area Member State, eligibility would be suspended and would resume only in the event of a positive outcome of the review.”
The first review of the third bailout, which was initially scheduled for the beginning of October, may reportedly be delayed until the end of November due to the snap elections on September 20 and the consequent delays in the implementation of the programme.
The second condition notes that the ECB will not buy more than 33 percent of the issuer’s debt and 33 percent of each specific bond issue (upward revised on September 3 from the initial 25 percent) to prevent getting a blocking stake under collective action clauses.
Draghi also revealed – for the first time - another condition: The ECB governing council will have to carry out a Greek debt sustainability analysis (DSA). This adds a new hurdle Greece has to overcome to become QE eligible