Greek central bank
While the approval by the European Commission's competition authorities of a Greek plan to cut bad loans at the country's lenders by up to 30 billion euros is an "important step" in the right direction it will not be enough, and will have to be supplemented by the Greek central bank's proposal, Governor Yannis Stournaras said on Friday.
A drop in Greek bank shares was caused by external factors, not the health of the country's banks, the governor of the Bank of Greece said on Wednesday.
Greek banking stocks have lost more than 40 percent so far this year, and the selling pressure grew in recent days. Analysts blamed the European Union's conflict with Italy over its proposed budget.
Greek central bank governor Yannis Stournaras reiterated on Wednesday his call for a precautionary credit line for Greece after it exits its adjustment program in August, saying it does not amount to a new bailout.
Stournaras said the precautionary arrangement would help the country borrow from the markets in a sustainable way.
Emergency central bank funding to Greek lenders dropped by 2.4 billion euros, or 13.5 percent, in February compared to the previous month, Bank of Greece data showed on Monday.
Emergency funding, which is more costly than borrowing from the European Central Bank, dropped to 15.05 billion euros from 17.4 billion euros at the end of January, the data showed.