The European Central Bank (ECB) will no longer allow loans to Greek banks with security in the country's debt.
The announcement from the central bank came on Wednesday night, just hours after Greece's Finance Minister Yanis Varoufakis held his first talks with ECB chief Mario Draghi to refinance the country's debt.
Responsibility to provide Greek banks liquid assets is from February 11 handed over to the Bank of Greece. This adds further pressure on Greece's new government to come to terms with the country's creditors.
ECB's decision, which required the support of a majority of central bankers in the euro zone, is seen as an expression of dissatisfaction with the plans of the new Greek government.
Stock markets fell as a result of the news. It also made that the euro was weakened by more than 1 percent against the dollar.
However the decision was apparently taken with calm in the Greek finance ministry. In a press release they write that it will not have any adverse impact on the country's financial sector.
DON'T MISS A POST - FOLLOW US ON FACEBOOK!
Comments at Speisa are unmoderated. We do believe in free speech, but posts using foul language, as well as abusive, hateful, libelous and genocidal posts, will be deleted if seen. However, if a comment remains on the site, it in no way constitutes an endorsement by Speisa of the sentiments contained therein.comments powered by Disqus
EU official: Turkey prepared arrest lists before failed coup
The failed Turkish coup was a preplanned event, hints EU enlargement commissioner Johannes Hahn.