Bank subsidiaries told to exit Greek debt exposure

FXStreet (Mumbai) - The daily morning newspaper published in Athens on Friday is reportedly carrying a story, which says the Central banks in southeastern European countries with ECB’s Single Supervisory Mechanism (ESM) have asked banking subsidiaries of Greek lenders in their countries to exit all exposures to Greek state bonds and treasury bills.

Other details include - exposure exit order also includes deposits in parent Greek banks, loans to Greece-based lenders. The move is largely to protect banking systems in case of “Grexit” and avoid contagion. The order to exit the exposure was made by the central banks of Albania, Bulgaria, Cyprus Macedonia, Romania , Serbia and Turkey.