ECB said to be studying curbs on Greek bank aid
Resistance to further aiding the country's stricken lenders is growing among policymakers
Frankfurt
THE European Central Bank (ECB) is studying measures to rein in emergency funding for Greek banks as resistance to further aiding the country's stricken lenders grows among policymakers, people with knowledge of the discussions said.
ECB staff have proposed increasing the discounts imposed on the securities banks post as collateral when borrowing from the Bank of Greece, the people said, asking not to be named as the matter is private. While adjusting these so-called haircuts hasn't been formally discussed by the Governing Council, it may be considered if Greece's leaders fail to quickly convince euro-area finance ministers they can reform their economy and secure bailout funds, one of the people said. Greek bank stocks slid.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
Beijing city to subsidise domestic AI chips, targets self-reliance by 2027
China passes tariff law as tensions with trading partners simmer
Blinken meets Chinese counterpart Wang Yi in Beijing
South Korea’s public finances no longer a credit rating ‘strength’: Fitch
UK consumer confidence improves as inflation and taxes fall
Inflation in Japan’s capital falls below BOJ target, slows for second month