Worries over the standoff between the leftist-led government in Athens and its creditors - the eurozone and the International Monetary Fund - over reforms needed to unlock bailout funds has sparked uncertainty and deposit flight from Greek banks. They have been relying on emergency liquidity assistance (ELA) from the domestic central bank, drawn against collateral, as progress on talks remains painfully slow.
ECB staff have prepared a proposal to reduce the value of that collateral, a media report citing people with knowledge of the discussions said on Tuesday. The ECB declined to comment.
Despite tangible progress in talks with the EU, the IMF and the ECB, Coeuré said significant differences remained and further work was needed. Capital controls were also not a working assumption. "In any case, it would not be up to the ECB to take measures of that sort. Those fall within the competence of national authorities", he said.
"The euro area needs Greece just as Greece needs the euro. An overwhelming majority of the Greek population want to keep the euro. It is the responsibility of the Greek government to take the appropriate steps to ensure its policies are in line with these clear preferences", he said.
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