The European Central Bank disagrees with Greece΄s plan to roll over bonds due next year to partly plug a funding gap because this would negatively impact the capital adequacy of two of the country΄s big banks, daily Kathimerini reported on Wednesday.
Looking for ways to cover a funding shortfall of nearly 11 billion euros in 2014-15, Greece has come up with a plan to roll over about 4.5 billion euros of bonds issued in 2009 as part of liquidity support to its banks during the global credit crisis.
But the ECB opposes the idea as a rollover would bring the Core Tier 1 capital ratio of two of Greece's four top banks below a required 9.0 percent, meaning a need for additional capital, the paper said citing unnamed sources.
Source: Kathimerini via Reuters