The FINANCIAL — Greek debt held by the European Central Bank can’t be restructured as doing so would contravene the eurozone’s founding treaties, Christian Noyer, a member of the ECB’s governing council said on July 6, according to Nasdaq.
Mr. Noyer’s comments come after the Greek people overwhelmingly voted ‘no’ in a referendum on conditions of a bailout form international creditors. Some countries—France in particular—say that a new deal with Greece could involve lightening Greece’s debt burden.
Greece’s debt is mainly held by eurozone governments, the ECB and the International Monetary Fund. The ECB has repeatedly ruled out restructuring the Greek debt it holds.
“The debt of Greece to the ECB is, by nature, impossible to restructure because that would be monetary financing,” said Mr. Noyer, who is also governor of the Bank of France.
Speaking at a news conference in Paris, Mr. Noyer said the ECB hasn’t yet taken a decision on the level of liquidity it will provide to Greek banks after the results of the referendum.
The ECB is set to hold a conference call later Monday to discuss Greece.
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