Bundesbank board member Joachim Nagel told Handelsblatt that the Greek banking system would face dire consequences if the new Greek government called the ocuntry’s aid program into question. “That would have fatal consequences for Greece’s financial system. Greek banks would then lose their access to central bank money,” he is quoted as saying in the Wednesday’s issue of the newspaper, adding that he rejects a possible haricut of the Greek bonds by the Eurozone’s central banks.

“Even if we came to that, the Eurosystem wouldn’t be able to agree,” he explained. “If we waivered our claims, that would constitute monetary state financing and this woud violate EU treaties.”