European Central Bank (ECB) President Mario Draghi reiterated on Thursday that the central bank would not participate in any further debt relief for Greece, arguing that such a move would be tantamount to financing the country directly.
“It is pretty clear that we cannot do monetary financing,” Draghi said, referring to the bank’s founding treaty which forbids direct financing.
International lenders estimate Greece could need up to 10 billion euros ($13.2 billion) more by September, as it struggles to plug a funding gap.
Draghi said it was up to the Eurogroup of euro zone finance ministers to decide on whether to extend the current aid program for Greece, and underlined that if they did so, then Greece must accept more conditionality clauses.
Draghi’s comments come after Eurogroup chief Jeroen Dijsselbloem said earlier during the day that it was “realistic” to assume Greece will need additional money from the rest of the euro zone.
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