Greek debt held by the European Central Bank cannot be restructured as that would amount to the ECB financing a government, which is explicitly banned by European Union rules, ECB governing council member Christian Noyer said on Monday.
According to a Reuters report, Noyer, who is also governor of the Bank of France said: “Greek debt held by the Eurosystem is debt that cannot by its very nature be restructured because that would be monetary financing of a state.”
The ECB board of directors is meeting today to discuss a request by the Bank of Greece for further funding of Greek banks through the emergency liquidity assistance (ELA) scheme.
Noyer declined to comment further on Greece’s debt situation as no decision had yet been taken, according to the Reuters report.
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