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Debt to ECB Can't Be Restructured

Greek debt held by the European Central Bank can't be restructured as doing so would contravene the eurozone's founding treaties, according to ECBs governing council member and governor of the Bank of France Christian Noyer, Monday.

Noyer's comments come after the 'no' vote in the referendum on conditions of a bailout from international creditors, despite rhetoric from some quarters, especially France in particular, that a new deal with Greece could involve lightening Greece's debt burden.

Greece's debt is mainly held by eurozone governments, the ECB and the International Monetary Fund. The ECB has repeatedly ruled out restructuring the Greek debt it holds.

"The debt of Greece to the ECB is, by nature, impossible to restructure because that would be monetary financing," said Mr. Noyer.

Speaking at a news conference in Paris, Mr. Noyer said the ECB hasn't yet taken a decision on the level of liquidity it will provide to Greek banks after the results of the referendum.