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ECB Bars Access to Four Greek Banks
Financial Times | May 17, 2012 | 02:09 AM EDT
The European Central Bank has reacted to uncertainty over Greece’s future in the eurozone by excluding four of the country’s banks from its regular liquidity providing operations.
The move raises the pressure on Greece to stick to its international bailout by highlighting the risk that eurozone central bankers could pull the plug on its financial system. It reflected ECB fears that a planned recapitalisation of Greece’s banks could be delayed.
The four Greek banks – which the ECB did not name – will have to rely instead on “emergency liquidity assistance” – a special temporary facility provided by the Greek central bank but subject to ECB approval. The ECB “continues to support Greek banks,” a spokesman said.