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ECB Welcomes Greek Draft Law

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The European Central Bank offered its stance on Greece's draft legislation.

On its website, the ECB stated as a legal opinion, "The ECB welcomes the draft law, as it strengthens the tools and procedures available to the Bank of Greece to carry out effective preventive, early intervention and effective resolution measures."

The monetary institution further commented, "By requiring the Finance Ministry's prior consent for all decisions pertaining to the sale of a business, the setting up of a bridge bank, asset separation, bail-in, write down or conversion, regardless of whether they have a direct fiscal impact or systemic implication, the draft law seems to go beyond the BRRD text."

The ECB added, "The consulting authority is invited to consider whether the Finance Ministry's prior consent should be more appropriately limited to those cases in which the resolution measures have a direct fiscal impact or systemic implications."

(Source: Bloomberg)