Greece’s Banking Industry Secretly Gets €100 Billion


Wednesday, 23 May 2012 11:50


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‘Greece’s struggling banking industry has been secretly injected with around €100 billion in emergency liquidity from the country’s central bank which was approved by the European Central Bank in Frankfurt, according to the FT.

This follow reports of a ‘run’ developing on Greek banks last week, which were emphatically denied by the Greek PM’s office. Greeks were reportedly withdrawing up to 700 mln Euro every day – a rate that would have effectively broken their banking system.

If Greece were to reject EU austerity and leave the euro zone the immediate reaction might be an ECB decision to pull the plug. An ECB threat in 2010 to do the same helped ‘persuade’ Ireland to accept an international bailout plan. No doubt, its governing council will hope to concentrate minds similarly in Athens.’

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