Euro Area Said to Consider Guarantee Plan for ECB Greece Aid
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Euro-area officials have informally discussed an arrangement whereby the European Central Bank maintains liquidity to Greek lenders in return for a guarantee for the loans, people familiar with the matter said.
As Greek banks remain closed and customers restricted to withdrawing a maximum of 60 euros ($66) a day, officials have recognized the need to ease the pressure on citizens while the government negotiates a bailout with European Union creditors. Yet with the risk of Greece exiting the euro rising by the day, the ECB may seek protection from any losses, the people said, asking not to be named as the matter isn’t public.