ATHENS: The European Central Bank (ECB) said Greek banks’ access to (ECB) funding beyond February will depend on Athens successfully completing final bailout review and reaching a deal on a follow up plan with its European Union (EU)/ International Monetary Fund (IMF) lenders.
The ECB has helped out Greek banks by exempting them from requirements on the collateral it accepts for access to funding.
The statement was the clearest warning yet that Athens cannot expect to rely on ECB funding if it reneges on its obligations under the 240 billion euro bailout programme.
Opinion polls show leftist party Syrian poised to win the January 25 election. The party has promised to cancel the austerity terms of the bailout and demand a renegotiation of debt.
Greek banks have reduced their exposure to ECB funding in recent months but still depend on the central bank for liquidity Hammered by the country’s prolonged economic crisis.
