Tsipras talks with Draghi following ECB decision to reject Greek bonds

Greek Prime Minister Alexis Tsipras was in contact with European Central Bank chief Mario Draghi late on Wednesday, after the ECB lifted a waiver on Greek government bonds Wednesday evening.

Sources indicated to Kathimerini that Draghi told Tsipras that the ECB decision would not affect the local banking system as lenders’ liquidity was assured via the emergency liquidity assistance (ELA) system.

The same sources reported that Tsipras told Draghi his efforts for a new deal with the country’s partners would continue, based on his mandate following the recent election.

The move means that Greek government bonds can no longer be used by Greek banks as collateral to borrow from the ECB. While the ECB had adopted a special provision to accept the Greek bonds, which were junk-rated, its governing council decided on Wednesday to lift the waiver as Greece does not appear set to conclude the bailout program which expires at the end of February.