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Thursday, July 9, 2015

Bundesbank chief says Greek capital controls should stay until new bailout

By John O'Donnell FRANKFURT (Reuters) - Capital controls in Greece should stay until a new bailout has been agreed, the head of Germany's central bank said on Thursday, arguing that the country's banks should get no extra central bank support until Athens has signed a deal. "Central banks need to show where their limits lie," Jens Weidmann told an audience in Frankfurt. "The Eurosystem should not increase the liquidity provision, and capital controls need to stay in force until an appropriate support package has been agreed ... and the solvency of both the Greek government and the Greek banking system has been ensured." Jens Weidmann's typically blunt remarks underscore the degree of opposition in Germany to further support for Greece after months of acrimonious negotiations that have taken it to the brink of leaving the euro.


READ THE ORIGINAL POST AT uk.news.yahoo.com