The European Central Financial institution took measures to restrict Greek banks’ entry to money.
After a gathering between central financial institution governor Mario Draghi and Greek Finance Minister Yanis Varoufakis, the ECB introduced that Greek bonds, which have a junk-level ranking, would now not be accepted by the central financial institution as collateral for money. The measure contains Greek authorities financial institution debt.
Greek banks are starved for liquidity. With out the usage of these devices to acquire money, the one useful resource Greek banks have are emergency loans from the European Central Financial institution.
The banks in Greece will now must convert about €30 billion ($34 billion) into emergency loans, which value extra, and which require ECB approval.
The ECB stated in an announcement that the choice was made primarily based on European financial system laws.
The Greek Finance Ministry responded with an announcement saying that the transfer would “put strain” on the ECB and the European Union to achieve an settlement with Greece about its debt.
Varoufakis is to fulfill with German Finance Minister Wolfgang Schauble this week in an try to return to an settlement along with his nation’s largest creditor.