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Nowotny says developments do not make it easy for ECB to act on Greek funding
July 6, 2015 / 11:05 AM / 2 years ago

Nowotny says developments do not make it easy for ECB to act on Greek funding

Austrian National Bank Governor Ewald Nowotny presents the bank's 2015-2017 economic forecast for Austria during a news conference in Vienna, June 8, 2015. REUTERS/Heinz-Peter Bader

VIENNA (Reuters) - The latest developments in Greece have not made it easier for the European Central Bank to change its stance on emergency funding, ECB Governing Council member Ewald Nowotny said on Monday after a referendum rejected bailout terms.

The ECB approves the provision of emergency liquidity for Greek banks but froze it one week ago, leading to the imposition of a 60-euro-a-day limit on cash withdrawals and the closure of banks. Its Governing Council talk on Monday about the approval of continued support.

“I am convinced that what we’ve done so far is right and conforms with our rules. But one has to make new decisions every time. The development in Greece does not make this easier for us, I‘m afraid,” Nowotny, who also heads Austria’s central bank, told ORF radio, commenting on the provision of Emergency Liquidity Assistance (ELA).

“It has become apparent that Greek banks have a tendency to run out of liquidity,” he said, adding, however: “One cannot keep banks shut indefinitely.”

Reporting By Shadia Nasralla; editing by John O'Donnell

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