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ECB pares support to Greek banks as citizens withdraw funds

Date: Wednesday 16 May 2012

LONDON (ShareCast) - The European Central Bank (ECB) is increasingly refusing requests for liquidity by Greek banks, according to reports in the Dutch financial press.

As a result of the ECB's stance, the banks are more dependent on support from the Greek central bank, Dutch financial daily Financieele Dagblad said Wednesday morning, citing sources in Brussels.

Greek banks had received €73bn from the ECB at the end of January but the amount has dropped by more than half, according to the newspaper.

Furthermore, according to the Greek central bank, Greek citizens have withdrawn up to €700m euros since the May 6th elections as a result of waning confidence in the country's financial institutions.

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