ECB Delegates Warn Greece Over Liquidity
- Written by Maria Athens
Leading European financiers have urged Greece to reach a conclusion with its international lenders, cautioning that the nation's banks might not attain additional liquidity, if a deal is not reached soon.
European Central Bank Vice President Vitor Constancio stated to the European Parliament, "...we at the ECB are convinced that there will be no exit of Greece from the euro."
Constancio also discussed the possibility of a Greek default and that as a result, there should not be any streamlined ramifications for local banks. The ECB VP added, "...provided the banks remain solvent and have the collateral that can be accepted for the supply of liquidity," as reported by Kathimerini.
European Central Bank governing council member Christian Noyer stated, "At some point, Greek banks are likely to be unable to offer enough collateral to access refinancing even for emergency liquidity. It is therefore urgent that Greece put an end to the current situation and that Athens should establish a program with the International Monetary Fund and the backing of other eurozone countries in order to re-establish confidence," in a newspaper publishing, according to Kathimerini.
