Bundesbank chief criticises emergency loans to Greece
The head of Germany’s Bundesbank criticised the weekly top-ups of emergency liquidity assistance (ELA) to Greek banks, saying in a German newspaper interview that this broke the taboo of financing governments.
“Given the ban on monetary financing of states, I don’t think it’s ok that banks which don’t have access to the markets are being granted loans which then finance the bonds of their government, which doesn’t have access to the markets itself,» Jens Weidmann told Handelsblatt, according to advance extracts of an interview due to be published on Friday.
[Reuters]
