European Central Bank
Emergency central bank funding to Greek lenders dropped by 0.65 billion euros, or 6.4 percent, in May compared to the previous month, Bank of Greece data showed on Tuesday.
Emergency funding, which is considerably more costly than borrowing from the European Central Bank, dropped to 9.56 billion euros from 10.21 billion euros at the end of April, the data showed.
The European Stability Mechanism (ESM) decided on Friday to withhold the 1 billion euros outstanding from the third bailout review, destined for the repayment of state arrears to third parties.
The decision surprised the Greek government as both the European Commission and the European Central Bank had made favorable recommendations regarding the disbursement of the money to Athens.
German Chancellor Angela Merkel has ruled out a possible alleviation of Italy's credit burden and, in an interview with the German newspaper Frankfurter Allgemeine Sonntagszeitung, she explained that the principle of solidarity between Eurozone members should not transform the currency union into a debt-sharing instrument, Reuters , quoted by Focus.