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ECB cutting back on liquidity for Greek banks, report says

The European Central Bank is increasingly refusing requests for liquidity from Greek banks, making them dependent on support from the Greek central bank, Dutch financial daily Het Financieele Dagblad reports Wednesday, citing «sources in Brussels», according to Dow Jones Newswires.

At the end of January, Greek banks had received 73 billion euros in liquidity support from the ECB, but this amount has dropped by more than 50% now, according to the newspaper.

The ECB is cutting back support because Greece has been holding off on recapitalizing its banking system, despite receiving EUR25 billion in funds for that purpose, the paper says.

ekathimerini.com , Wednesday May 16, 2012 (10:52)  
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