ATHENS: European central banks have lent 110 billion Euros to Greece banks, the head of France’s monetary authority said in comments published Monday, warning that any move by Athens to leave the euro zone would be “traumatic.”
The country wants the last tranche of its bailout funding worth 7.2 billion Euros (7.7 billion) but has balked at tough reform conditions demanded by its creditors in exchange. Negotiations are ongoing.
In an interview with Le Figaro daily, Christian Noyer, head of France’s central bank, said the level of funding of the Greek economy by the Euro system – the euro zone’s monetary authority – was “by far the biggest in the euro zone”. “We are currently at 110 billion Euros and we have more than doubled liquidity contributions in six months.”
