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> Politics

Conflicting reports over ECB intent to cap T-bill purchases by Greek banks

Bloomberg reported that teh ECB rejected the prospect ahead of high-level negotiations

Newsroom March 19 05:45

FT reported on Thursday that the ECB is considering the idea of stopping Greece’s systemic from acquiring more Greek government debt, a measure that would add more headaches to the cash-strapped SYRIZA government.

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The London-based international media outlet said ECB officials and eurozone central bankers were debating the prospect, nearly a month after warning Greek banks to stop purchasing Greek short-term debt.
The deliberations come ahead of a meeting in Brussels on Thursday between Greek PM Alexis Tsipras with five top European leaders, including ECB chief Mario Draghi.

Nevertheless, a separate story by Bloomberg has the ECB rejecting the prospect, ostensibly submitted by its supervisory arm, the Single Supervisory Mechanism.

That development, according to Bloomberg, was linked to the ECB board of directors’ hesitation at appearing to “intervene” in the high-level negotiations set to take place on Thursday.

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