Greek govt bonds fall as ECB restricts access to funds for financial institutions

Frankfurt

GREECE'S government bonds tumbled with bank debt and equities as the European Central Bank (ECB) jolted markets with its decision to restrict access to funding lines for the nation's financial institutions. Greek assets had already slumped after the anti-austerity Syriza party triumphed at Jan 25 elections.

Now, the ECB's decision will raise financing costs for the nation's lenders, adding to pressure on the newly elected government to moderate its policies or risk sterner measures that may jeopardise Greece's membership of the 19-nation currency bloc.