The European Central Bank (ECB) ordered in writing to Greek banks to stop buying debt issued by Athens, as this poses a risk to its financial soundness, said Wednesday AFP a source close to the case.
The ECB, in charge since November 2014 for the supervision of European banks in addition to its policy mandate, believes there is a “risk that the balance of the Hellenic institutions to collapse by bad assets quality, “said this source. Therefore, this week, the institution ordered Greek banks “not increase their risk.”
“It’s something that should be taken seriously” by the banks, considered the source.
The Financial Times and the Wall Street Journal had previously mentioned a letter sent to the Hellenes bank. The ECB did not comment on this information.
Athens placed most of its bonds, issued regularly, Greek banks, which serves to reimburse precedent and stay afloat financially as well as state coffers are nearly empty . The problem is that the rating agencies Greek debt is considered “junk”.
In early February, the ECB stopped accepting Greek sovereign debt from Greek banks as collateral for its weekly lending, an important source of funding for helenas entities.
Before that date, the Greek banks benefited from a system of allowing Please bring these securities as collateral, but after coming to power in Greece Syriza government, the institution chose to end the scheme .
Greek banks are refinanced at this time in the country’s central bank emergency loans (most expensive), within the framework of a mechanism called ELA approved by the ECB.
Athens has repeatedly asked the Frankfurt-based institution to do more to alleviate their pressing financial difficulties, but the council president, Mario Draghi, believes and does a lot for the country and not was willing to violate existing rules, said earlier this month.
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