Friday December 19, 2014 Search
Weather | Athens
17o C
10o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
ECB to stop lending to local banks

 Lenders will have to use funds from local mechanism for now

The European Central Bank announced on Wednesday that it would temporarily stop lending to certain Greek banks until they have completed their recapitalization, a process that has been delayed -- generating worries in the local credit system -- but should be concluded next week, according to the countrys credit stability fund.

The ECB suggested that the local banks that have not yet boosted their capital sufficiently, as is the case with the majority, will have to temporarily resort to the Bank of Greece and its emergency liquidity assistance (ELA) to ensure an adequate cash flow.

Once the recapitalization process is finalized, and we expect this to be finalized soon, the banks will regain access to standard Eurosystem refinancing operations, the European Central Bank stated.

Panayiotis Thomopoulos, the head of the Hellenic Financial Stability Facility (HFSF), stated on Wednesday that the 18 billion euros destined to bolster the capital base of the four main commercial lenders will be transferred via the deposit of bonds to National, Alpha, Eurobank EFG and Piraeus by Tuesday or Wednesday next week.

The credit market in Greece is fuming at the delay in the recapitalization process. Although the relevant government decision was approved before Easter (April 15), and the European Financial Stability Facility (EFSF) has forwarded 23 billion euros to the HFSF to this end, these funds have not yet reached the local banks.

Had the process been already completed, banks would not only have been able to tap into the liquidity of the Eurosystem, but the 18 billion euros in bonds would have stabilized the local credit market and reduced anxiety. Bank officials suggest the delay is simply unjustifiable.

Worse, deposits are continuing to shrink as Greek citizens fears about the course of the economy grow, with rumors circulating in foreign media that local banks have set a 50-euro ceiling on cash withdrawals, which is completely unfounded.

Bank sources said the situation remains under control, but add that caution should be exercised to avoid any statements that would generate panic.

ekathimerini.com , Wednesday May 16, 2012 (23:30)  
Importers told to pay up in advance
Jobless rate posts steady decline
Piraeus and KKR strike loans portfolio deal
German approval and praise come at key time
Stores wrecked in protests to be let off municipal fees
Athens Mayor Giorgos Kaminis on Thursday proposed that businesses in the capital that suffered damage when demonstrations turned violent on December 6, the sixth anniversary of the police ki...
SYRIZA rules out political consensus before polls
Leftist SYRIZA leader Alexis Tsipras on Thursday categorically ruled out any kind of consensus with other political parties before elections. We are prepared at this historic moment to lead...
Inside News
SOCCER
PAOK loss at Giannina brings Olympiakos to within a point
The bad losses that PAOK and Panathinaikos suffered on the road on Thursday allowed Olympiakos to gain significant ground on the table and come to within one point from the top after the mid...
BASKETBALL
Reds lose in Turkey to motivated Galatasaray
Olympiakos went down at Galatasaray 79-74 on Thursday for its second defeat in the first round of the Euroleague that ended with the Reds topping their pool with eight wins in 10 games. With...
Inside Sports
COMMENTARY
New weapons of diplomacy
Hollywood screenwriters couldnt make it up: That Sony, one of the worlds biggest film producers, would be forced to pull a comedy about the assassination of North Koreas dictator after a ...
COMMENTARY
Europes drama in Greece needs final act to avoid tragedy
Judging from Wednesday's vote in the Greek parliament, Prime Minister Antonis Samaras may not get the mandate he wants to keep economic austerity measures in place and avoid defaulting on th...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. PAOK loss at Giannina brings Olympiakos to within a point
2. Reds lose in Turkey to motivated Galatasaray
3. Importers told to pay up in advance
4. Jobless rate posts steady decline
5. Piraeus and KKR strike loans portfolio deal
6. German approval and praise come at key time
more news
Today
This Week
1. Europe's drama in Greece needs final act to avoid tragedy
2. Election looms as Samaras fails to win vote for president
3. Kammenos maintains firm position, says general election is 'one-way street'
4. What SYRIZA says about Greeces economy, its debt and the euro
5. Merkel says Russia sanctions to remain unless Putin yields; Greece's prospects 'better than two years ago'
6. Snap elections would lead to euro exit, says former premier
Today
This Week
1. Juncker warns Greeks against voting 'extreme forces' into power
2. Romanos and the dilemma
3. Samaras summons bond vigilantes with euro exit talk
4. A friendly yet firm message from Pierre Moscovici
5. Greece reruns doomsday scenario as politics collide with markets
6. Gap between SYRIZA and New Democracy closing, says poll
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.