Berlin: A German news paper has said that the European Central Bank (ECB) has saved Greece from bankruptcy for the time being by securing it interim financing in the form of additional emergency loans, according to a news wire
The ECB's Governing Council, in a meeting held two days ago, agreed to increase the upper limit for the amount of Greek short-term loans the Bank of Greece can accept in exchange for emergency loans, the newspaper has said.
Until now the Bank of Greece could only accept T-Bills up to a limit of 3 billion euros as collateral for emergency liquidity assistance (ELA) but it has applied to have this limit increased to 7 billion euros, the daily said, citing central bank sources.
The move should enable the Greek government to access up to an extra 4 billion euros of funds, the paper said, adding that this should ensure the country keeps its head above water until the "troika" of the European Union, the European Central Bank and the International Monetary Fund decide on the disbursement of the next tranche of money from its aid program in September.
However there has be no comment over this by the ECB declined to comment, the paper said.
With Agency Inputs
First Published: Saturday, August 04, 2012, 10:02