Bank of Greece

Greek banks have been given approval to tap an additional 10 billion euros in emergency funding over an existing ceiling if necessary, a Greek government official said in a statement on Thursday.

By Nikos Chrysoloras and Elisa Martinuzzi

Greek banks plummeted in Athens trading Thursday after the European Central Bank restricted direct access to its funding lines, forcing the nation?s lenders to rely on emergency funds.

The Greek Finance Ministry interpreted a European Central Bank decision to stop accepting Greek government bonds as collateral from local lenders as a moved aimed at pushing Athens and its eurozone partners towards a new debt deal.

By Lorcan Roche Kelly

In a press release that jolted the markets, the ECB announced that it will no longer accept Greek government debt as collateral starting next week. But this news is not necessarily a potential liquidity disaster for Greek banks.

By Evgenia Tzortzi

Interest rates on deposits are continuing to fall at commercial Greek banks despite the credit sector?s cash flow problems. Bank of Greece data showed yesterday that the average interest rate in December came to 1.82 percent, against 1.88 percent in November and 2.61 percent in early 2014.

 Credit sector expects swift deal for new funding program, otherwise country?s economy risks being derailed

By Yiannis Papadoyiannis

By John O'Donnell & Jan Strupczewski

Greece's new leftist government appealed to the European Central Bank on Wednesday to keep its banks afloat and vowed to respect European Union rules as it seeks a negotiated solution with euro zone partners to reduce its debt burden.

European Central Bank funding to Greek banks rose 47 percent in January from a month earlier, Greek central bank data showed on Tuesday, as deposit flight squeezed liquidity and forced the country?s lenders to increase their borrowing from the ECB.

ECB lending to Greek banks against collateral rose to 82.24 billion euros in January from 56.04 billion euros in December.

Greece is tapping into the cash reserves of pension funds and public sector entities through repo transactions as it scrambles to cover its funding needs this month, debt officials told Reuters on Tuesday.

By Yiannis Papadoyiannis

The European Central Bank remains opposed to an increase in the exposure of domestic lenders to treasury bills, while its verdict tomorrow on the possible extension of the emergency liquidity assistance (ELA) mechanism for Greek banks is eagerly anticipated.