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Athens: The ECB is to ban Greek banks from increasing their holdings of Greek government debt (Photo: and641)

ECB to tighten noose on Greek government

The European Central Bank is set to make it illegal for Greek lenders to increase their purchases of short-term government bonds in a move that will tighten the funding noose on the Greek government.

The decision, which has reportedly been formalised in a letter sent on Tuesday (March 24) to Greek authorities, the Financial Times reports, comes just two days after the bank’s president Mario Draghi rejected suggestions that the bank was effectively blackmailing Greece by making it toughe...

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Author Bio

Benjamin Fox is a seasoned reporter and editor, previously working for fellow Brussels publication Euractiv. His reporting has also been published in the Guardian, the East African, Euractiv, Private Eye and Africa Confidential, among others. He heads up the AU-EU section at EUobserver, based in Nairobi, Kenya.

Athens: The ECB is to ban Greek banks from increasing their holdings of Greek government debt (Photo: and641)

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Author Bio

Benjamin Fox is a seasoned reporter and editor, previously working for fellow Brussels publication Euractiv. His reporting has also been published in the Guardian, the East African, Euractiv, Private Eye and Africa Confidential, among others. He heads up the AU-EU section at EUobserver, based in Nairobi, Kenya.

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