ECB stops banks using Greek debt as loan collateral

Thursday, 05 February 2015 - 9:45

The European Central Bank cut off Greek banks' access to a key source of much-needed cash, piling fresh pressure on the country's new government to reach a deal with international creditors.

In a decision that rattled financial markets, the ECB said it would no longer allow Greek banks to use government debt, which has a junk rating, as collateral for loans.

The announcement came just hours after new Greek Finance Minister held his first talks with ECB chief as part of the country's push to renegotiate Athens'270 billion dollar EU-IMF bailout.