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Greek banks absolutely have no problem: Central Bank

Governor of Greek Central Bank Yannis Stournaras

The governor of the Greek Central Bank says banks and financial institutions in his country are solid and under control in the wake the European Central Bank (ECB)'s move to limit access to a key source of funds by Greek lenders. 

"Deposits and liquidity are absolutely safe. There is absolutely no problem with the banks. We are under control. It was a calm day today," Yannis Stournaras said on Thursday.  

He further noted that the ECB's decision could be temporary.

"The ECB's decision can be taken back if there is a deal from the Greek government [and its EU partners]," Stournaras said. 

The remarks came following a Wednesday announcement by the ECB that it would no longer allow Greek banks to use government debt as guarantee for loans. 

The Greek government reportedly considers the ECB decision as "an act of political pressure to enable the rapid conclusion of an agreement" with the country’s international creditors. 

A Greek government source said on Thursday that Athens will not be "blackmailed" by its European Union partners. 

"The Greek republic does not intend to blackmail anyone but will not be blackmailed either," the source said, emphasizing that the Greek banking system "is fully secure." 

Greek Finance Minister Yanis Varoufakis told a news conference following talks with his German counterpart Wolfgang Schaeuble in Berlin on Thursday that the Athens government has disagreements with Germany and the ECB over the country's bailout. 

"We even didn't agree to disagree from where I'm standing," Varoufakis stated. 

Prime Minister Alexis Tsipras also insisted he would carry out the promise of his Syriza to end the "nightmare" of austerity in Greece. 

"We are a sovereign country, we have democracy, we have a contract with our people, we will honour this agreement," Tsipras said. 

He added, "Fear is over in Greece. Terror and blackmail are over... The Greek republic cannot be blackmailed because democracy in Europe cannot be blackmailed."  

MP/NN/MHB


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