Greek hopes pinned on Monday's Eurogroup

The European Central Bank (ECB) Governing Council at Nicosia, Cyprus, on Thursday approved just 500 million euros worth of extra liquidity for banks from ELA, leaving Greece out in the cold and also rejecting Greek Treasury bonds sales until at least July or August. The meeting was seen as a 'bad omen' for Greece ahead of the Eurogroup meeting on Monday to be attended by Finance Minister Yanis Varoufakis.

ECB Chief Mario Draghi said that central banks decisions are dependent to a large degree on what goes on at Eurogroup, adding that the ECB would be in a better position to make decisions in favor of Greece once an agreement is reached. Government officials are now hoping that Monday's Eurogroup could create new conditions for Greece

Prime Minister Alexis Tsipras is meeting on Friday morning with Bank of Greece Governor Yannis Stournaras who was present at Thursday's meeting. The Greek central banker will brief Tsipras.

On Friday, Greece needs to pay off a 298.9-mln-euro installment to the International Monetary Fund (IMF) in return for the first rescue package for Greece and another 1.4 bln euros for bonds. It also needs to have enough money in its coffers to pay off 336 bln euros to the IMF next Friday and another 1.6 bln euros for bonds payments. The 500 mln euro that the ECB agreed to pump to banks are only marginally adequate to prevent 'accidents'.

Deputy Prime Minister Giannis Dragasakis admitted on private ANT1 news that there is a cash flow problem, however said that it is hardly as sharp as it is portrayed. He recognized that among the positive messages sent by ECB Chief Mario Draghi was the fact that he stressed that Greek banks don't have a problem.