ECB says Greek banks’ funding access hinges on successful bailout review

Greek bank access to European Central Bank funding assumes a successful completion of a bailout program review and a subsequent deal on a follow-up program with EU/IMF lenders, the ECB said on Thursday.

The ECB makes exceptions on the collateral it accepts from Greek banks, allowing them continued access to central bank funding despite the country’s low sovereign credit rating.

“The continuation of the waiver is based on the technical extension of the European Financial Stability Facility program until the end of February 2015 and the existence of an International Monetary Fund program,” an ECB spokesperson said in a statement.

“It is also based on the assumption of a successful conclusion of the current review and an agreement on a follow-up arrangement between the Greek authorities and the European Commission, in liaison with the ECB, and the IMF.

Greek banks have reduced their exposure to funding from the ECB but still depend on the central bank for liquidity.