BUSINESS

ESM denies reports over involvement in Greek bank plan

TAGS: Finance, Banking, EU

The eurozone's European Stability Mechanism (ESM) bailout fund on Friday issued a statement denying recent press reports it was taking part in preparatory work for a possible intervention plan in favor of Greek banks.

“The ESM is following closely the latest developments in the Greek financial sector as part of its obligations as Greece’s largest creditor,” it said in a statement Friday.

“However, press reports about the ESM being part of preparatory work for a possible intervention plan in favor of Greek banks are wrong,” it added.

The ESM, set up to lend to sovereigns cut off from markets in exchange for reforms, helped Greece get back on its feet after three successive bailouts worth almost 250 billion euros in total.

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