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Greek banking sector faces no risk: central bank governor

Xinhua, March 6, 2015 Adjust font size:

Greek banking sector faces no risk, Greek central bank governor Yannis Stournaras assured on Friday ahead of a critical Eurogroup meeting on the Greek debt crisis on Monday.

"There is full support for Greek banks, there is no risk. Banks are adequately capitalized and their liquidity is ensured. There is no problem at all with deposits," Stournaras told media after a meeting with Greek Prime Minister Alexis Tsipras.

Stournaras briefed Tsipras and his government's finance team about Thursday's European Central Bank (ECB) gathering in Cyprus in which he participated.

ECB president Mario Draghi said on Thursday that the ECB would resume normal financing to Greek banks once Greece complies with the commitments undertaken under the bailout program and a positive review of Greek finances comes to a conclusion.

Under the Feb. 20 Eurogroup agreement for an extension of the four-year bailout which expires in June, the assessment should be made in April.

Until then, Greek lenders are relying on the more expensive Emergency Liquidity Assistance (ELA) mechanism, as the recently elected anti-bailout Syriza government faces a financing gap, fuelling concern over a credit event in coming weeks.

"It is of great importance that the next Eurogroup meeting is successful," Stournaras said on Friday.

The list of proposed key reforms Greek Finance Minister Yanis Varoufakis is to present at Monday's meeting are expected to be enriched with more proposals focusing on supporting the banking sector, according to Greek media reports. Endit