French PM says ECB should not cut support for Greek banks
(VOVworld) – The European Central Bank (ECB) should not cut off its support for Greek banks even, if the June 30 deadline for debt repayment is missed, said French Prime Minister Manuel Valls in an interview Sunday with French radio station Europe 1.
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| European Central Bank decision puts further pressure on Greek banks as Greeks queue at cash machines and officials mull capital controls. (Photo: independent.co.uk.) |
Valls said that while the European Central Bank is independent, it still has to take its responsibilities seriously. He said there is a real risk of Greece leaving the Eurozone if the Greek people vote against the EU bailout proposal in a referendum scheduled for July 5.
The same day, the ECB refused to increase emergency credit to Greek banks after the Greek government announced a referendum on bailout terms proposed by Greece’s European creditors, which halted talks with creditors. The ECB’s decision left Greek banks under increasing pressure as they watch deposits drain away.