Bloomberg reports that the European Central Bank is studying measures to rein in Emergency Liquidity Assistance to Greek banks, as resistance to further aiding the country’s stricken lenders grows in the Governing Council.
ECB staff have produced a proposal to increase the haircuts banks
take on the collateral they post when borrowing from the Bank of Greece.
the measure hasn’t been formally discussed by the Governing Council, it
may be considered if Greece’s leaders fail to quickly convince
euro-area finance ministers they can reform their economy and secure