Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

ECB's Nowotny says no to loosening funding for Greece now

Published 05/28/2015, 03:13 AM
Updated 05/28/2015, 03:13 AM
© Reuters. European Central Bank Governing Council member Nowotny gestures during an interview with Reuters in Vienna

© Reuters. European Central Bank Governing Council member Nowotny gestures during an interview with Reuters in Vienna

FRANKFURT (Reuters) - A European Central Bank policymaker played down the prospects for an immediate loosening of funding for cash-strapped Greece, saying that when it came to accepting the country's bonds as security for central bank credit, the answer remained no.

The critical comments from Ewald Nowotny, who as head of the Austrian central bank also sits on the ECB's policy-setting Governing Council, echo those of European officials, who have played down Greek government optimism that a deal is near.

"There is always a lot of noise in such a situation and I think the important point is to distinguish the noise from the facts," Nowotny told CNBC television.

"For us, it is quite clear that we have certain conditions to be met. The one condition is ... whether we can accept for instance Greek assets, Greek bonds, as collateral. The answer is, for the time being: No," said Nowotny.

In February, the European Central Bank abruptly canceled its acceptance of Greek bonds in return for funding, shifting the burden onto Athens' central bank to finance its lenders and isolating Greece unless it strikes a new reform deal.

The move, which means the Greek central bank provides banks with tens of billions of euros of emergency liquidity, was in response what many in Frankfurt saw as the Greek government's abandoning of its aid-for-reform program.

Nowotny said there had since been no change of heart.

"One has to be quite clear. We do not have a possibility to do some, let's say, financing outside our rules."

© Reuters. European Central Bank Governing Council member Nowotny gestures during an interview with Reuters in Vienna

"I know there had been some ideas floating around that we might give some kind of interim financing just like that. I don't see any legal possibility for that," he said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.