ECB stops banks using Greek debt as loan collateral
Arab Today
The European Central Bank on Wednesday announced it was suspending a waiver allowing Greek banks to use government debt as collateral for loans, depriving the banks of a key avenue to much-needed cash.
"Suspension is in line with existing Eurosystem rules, since it is currently not possible to assume a successful conclusion of the programme review," the Frankfurt-based ECB said in a statement, referring to ongoing talks between the new Greek government and its international creditors.
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