ECB Says Recapitalized Banks Can Return to Normal ECB Funding

The European Central Bank said it’s willing to allow Greek banks needing recapitalization to return to its normal lending operations once that process has been completed.

The ECB said it expects recapitalization to be finalized “soon,” according to an emailed statement today. Until then, banks that are “severely undercapitalized” after this year’s restructuring of Greek government debt will have to tap the Emergency Liquidity Assistance program provided by the Greek central bank.

To contact the reporter on this story: Gabi Thesing in London at gthesing@bloomberg.net

To contact the editor responsible for this story: John Fraher at jfraher@bloomberg.net

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