Author Topic: ECB gets tough on Greece  (Read 3320 times)

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Offline TonyKath

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ECB gets tough on Greece
« on: Thursday, 05 February, 2015 @ 11:48:00 »
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The European Central Bank (ECB) has toughened its stance with Greece by restricting financing to the country's banks  In a statement, the central bank said it would no longer accept Greek government bonds as collateral for lending money to commercial banks.  The move makes access to cash more expensive for Greece's banks. 

The ECB said the suspension came as it could not assume a "successful" deal on Greece's €240bn (£179bn) bailout.  The newly-elected Greek government is in talks with international creditors over the terms of its bailout, which it thinks are too harsh. 

The Greek finance ministry said the ECB's decision, which is due to come into effect on 11 February, would have "no adverse impact" on the country's financial industry.  It said the sector was "fully protected" with other options still available.

http://www.bbc.co.uk/news/business-31142437

Tony
« Last Edit: Thursday, 05 February, 2015 @ 11:52:30 by TonyKath »