Nowotny Says ECB Is Banned From Forgiving Greek Debt

The European Central Bank is banned from taking part in a Greek debt restructuring because it would be tantamount to printing money to finance governments, Governing Council member Ewald Nowotny said.

“For the ECB, forgiving debt isn’t possible because it would be equivalent to indirect state financing,” Nowotny told journalists in Vienna today. “Therefore, the ECB certainly can’t participate in a such actions of the public sector.”