In response to the Greek government’s request for a public statement of support, in order to curb the negative climate against the country, ECB expressed yesterday its intention to “loosen” the framework covering Greek banks’ borrowing with the aim to boost their liquidity.

The Bank of Greece confirmed today that during a communication between Greek central banker Yannis Stournaras with ECB’s president Mario Draghi that took place on Wednesday evening, the ECB expressed its intention to loosen the rules for Greek banks’ borrowing‏.

More specifically, the ECB is expected to lower a “haircut” imposed on securities offered by Greek banks as collateral to borrow from the central bank.

However, a final agreement has not been reached yet between the ECB and the Greek side regarding the collateral offered by Greek banks.

Citing sources from ECB, Bloomberg reported that “we have yet to agree on new rules for Greek bonds.”

It should be noted that the negative climate was created after a financial crisis on the Athens Stock Exchange which resulted in investors shying away from the Greek market due to fears of political instability.