ECB: Greek banks’ special status at risk

Without a post-bailout program framework, the special status allowing Greek banks to enjoy European Central Bank financing will be lost, ECB governing council member Benoit Coeure is said to have told Greek bankers on Monday in Frankfurt, while Bundesbank President Jens Weidmann also expressed support for such a framework for Greece.

At the meeting attended by Coeure, the head of the European Central Bank’s Single Supervisory Mechanism (SSM), Daniele Nouy, and representatives of the Hellenic Bank Association, Kathimerini understands the ECB council member from France responded to a Greek banker’s question saying that without a framework after the expiry of the current program in August, the waiver allowing the ECB to accept Greek bonds as collateral will cease.

While hosting a working dinner, Weidmann told Greek bankers that he agrees with the position of the Bank of Greece for a precautionary support framework.

The HBA representatives’ meetings in Frankfurt took place in a positive atmosphere, with Nouy calling for a speedier resolution of the bad-loans problem, but there was no clearer picture on the methodology or other technical details of the upcoming stress tests.