Needy people eat at the Church-run Galini charity's soup kitchen in central Athens on Monday, July 6, 2015. (AP Photo/Emilio Morenatti)
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For six years the Greek crisis has unfolded in a predictable pattern: Greece needs money.Second, Greek debts that are owed by the state and payable to the ECB and IMF – roughly 48 billion euros ($52.5 billion) in total – should be bought back by the ESM.Next, in order to fend off money from international institutions going through back doors and straight back into the Greek government's coffers, the ECB would no longer accept government debt or financial instruments that are guaranteed by the Greek sovereign as collateral for routine or even emergency funding operations.This has been the key funding source for the Greek banks for the many months, so it's a rather important cog in Citi's plan.Following this, Greek banks would still have access to funding from the ECB and ELA, assuming that they are deemed fit to offer adequate collateral that is not related to the Greek government. Wrapping up this point, Buiter said the ECB would probably bar Greek banks from creating new loans or other forms of funding to the state.
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