Advertisement

ECB denies that it wants to impose capital controls in Greece

The European Central Bank (ECB) has denied reports that it has been pushing for the introduction ...
Newstalk
Newstalk

10.01 19 Feb 2015


Share this article


ECB denies that it wants to im...

ECB denies that it wants to impose capital controls in Greece

Newstalk
Newstalk

10.01 19 Feb 2015


Share this article


The European Central Bank (ECB) has denied reports that it has been pushing for the introduction of capital controls to stem the outflow of deposits from Greek banks.

This was in response to the story published in Frankfurter Allgemeine Zeitung (FAZ), one of the biggest newspapers in Germany.

It cited sources from the ECB, and said:

Advertisement

"Greek banks are weakened by large outflows. Since December Greeks, cleared up more than 20 billion from their accounts. In central bank circles it was discussed why the Greek government had not yet introduced capital controls. "The Governing Council and the Governing banking supervisors would be better if there were capital controls to prevent bleeding of the banks," it was said in ECB circles."

It continues: "The Council of the ECB also discussed the question of whether and how long the Greek banks in general are still solvent. ELA-emergency loans may only be granted to temporarily illiquid but solvent banks in principle."

Similar rules were introduced in Cyprus during its financial crisis in 2013.

The ECB spokesperson denied the reports, saying: "There was no discussion on capital controls in the Governing Council."

The central bank did agree to give €3.3bn more emergency funds for the country’s banks - a modest extension that keeps the Greek government under pressure to reach a more secure deal.


Share this article


Read more about

News

Most Popular