Greek banks regain access to ECB funding

(FRANKFURT) - A number of Greek banks have regained access to regular European Central Bank funding following Athens' implementation of a bank recapitalisation plan, the ECB said Wednesday.

"Greek banks have once again gained access to the ECB's regular refinancing operations," a central bank spokesman told AFP, saying the banks had taken part in such an operation on Tuesday.

Last year, the ECB effectively cut the banks' access to funding by refusing to accept Greek sovereign bonds as collateral in its regular refinancing operations while a deal due to restructure the country's debt was still being worked out.

Instead, the banks were reliant on more expensive emergency funds from Greece's own national central bank.

In its regular weekly refinancing operation on Tuesday, banks borrowed 121.24 billion euros ($161 billion) from the ECB, up from 77.72 billion euros a year earlier, an increase largely due to the return of the Greek banks.