European Central Bank averts Greek bankruptcy, paper says
ECB's Governing Council agrees to increase the upper limit for the amount of Greek short-term loans that the Bank of Greece can accept in exchange for emergency loans, Die Welt reports.
BERLIN - The European Central Bank has saved Greece from bankruptcy for the time being by securing interim financing for it in the form of additional emergency loans from the Bank of Greece, German newspaper Die Welt reported on Saturday.
The ECB's Governing Council agreed at its meeting Thursday to increase the upper limit for the amount of Greek short-term loans that the Bank of Greece can accept in exchange for emergency loans, the newspaper said.
Until now, the Bank of Greece could only accept T-Bills up to a limit of 3 billion euros ($3.70 billion ) as collateral for emergency liquidity assistance but it has applied to have this limit increased to 7 billion euros, the daily said, citing central bank sources.
The ECB Governing Council reportedly granted the plan a green light. The move should enable the Greek government to access up to an extra 4 billion euros of funds, the paper said, adding that this should ensure the country keeps its head above water until the "troika" of the European Union, the European Central Bank and the International Monetary Fund decide on the disbursement of the next tranche of money from its aid program in September.
The ECB declined to comment, the newspaper added.