Published on Feb 5, 2015
The new hard-left government of Greece says it will not be blackmailed by the European Central Bank’s move to limit its access to a key source of cash. A government source insists that the country’s banking system is fully secure after the ECB decision. The source added that Athens considers the move as a means to exert more political pressure on the new anti-austerity government. European stock markets slid Thursday after the ECB announced that it would no longer allow Greek Banks to use government bonds as collateral for loans. London’s Footsie 100 index dipped 0.48 percent. Frankfurt’s Dax 30 shed 0.25 percent and in Paris the Kak 40 reversed 0.60 percent.
‘Greece won’t be blackmailed’: Banks get additional €10bn to counter ECB pressure!
Banks in Greece have been given the go ahead to access an additional €10 billion in emergency funding from the Bank of Greece, according to a government official. This is a push-back from Athens demonstrating its intent to roll back austerity measures.
“Greece does not aim to blackmail anyone but will not be blackmailed either,” the government official, cited by Reuters, said.
Emergency Liquidity Assistance funds will be sourced from the Greek Central Bank. Previously it was capped at €15 billion, and this has been raised to €25 billion.
The European Central Bank has stepped up pressure on Greece by suspending a waiver that had allowed it to swap its junk-rated debt for loans. This means Greece could run out of cash by the end of February.
“The ECB’s decision … is an act of political pressure to quickly reach a deal,” the official said.