Greek Banks Cut ECB Borrowing Further In April
June 06 2011 - 9:31AM
Dow Jones News
Greek banks reduced their borrowings from the European Central
Bank in April to EUR86.9 billion, data released by the Greek
central bank showed Monday, extending a downtrend for a fourth
month after hitting a peak at the end of last year.
In March, Greek banks had borrowed EUR87.9 billion as part of a
continued emergency lifeline extended by the ECB to banks in Greece
and other countries in Europe which faced liquidity squeezes. In
December, that borrowing peaked at EUR97.7 billion.
In May last year, the Greek government narrowly avoided default
with the help of a EUR110 billion bailout from the European Union
and the International Monetary Fund, but its bonds have been
downgraded to junk status.
Since then, Greek banks have been effectively frozen out of
European interbank markets amid fears that a Greek sovereign
default would drag down the country's banks.
Greece's four major lenders--the National Bank of Greece SA
(NBG), EFG Eurobank Ergasias SA (EUROB.AT), Alpha Bank SA
(ALPHA.AT) and Piraeus Bank SA (TPEIR.AT)--have all been under
pressure to reduce their dependence on ECB liquidity.
-By Alkman Granitsas, Dow Jones Newswires; +30 210 331 2881;
alkman.granitsas@dowjones.com