ECB continued to take a pretty tough line on Greece: Capital Economics

Quotes from Capital Economics:

- Draghi confirmed that the ECB had agreed for the Greek Central Bank to increase Emergency Liquidity Assistance from €68.3bn to €68.8bn. But this drip-feed of liquidity will do little to reinstate confidence in the banking system, particularly as they were already borrowing more than that from the ECB in Jan. 

- He also stressed that the earlier waiver allowing banks to use Greek government bonds as collateral for cheaper ECB funding would not be reinstated until a list of reforms was agreed with the Eurogroup.

- Meanwhile, he indicated that he was unwilling to facilitate increased T-bill issuance by the Greek Government by upping the amount that banks can use as collateral for central bank funds. This, he hinted, would amount to illegal monetary financing. 

- So the onus remains on the Greek Government to enact hugely controversial "reforms" to allow bailout payments to be resumed. It seems that only this will allow a disorderly default and euro exit to be avoided.