The ECB is increasingly concerned by a deteriorating relationship between the Greek government and the country’s central bank, according to sources,

Greece emptied an emergency IMF holding account to repay €750m due to the international lender, a Greek central bank official said, avoiding default but underscoring the dire state of the country’s finances.

Greece has won access to more emergency funding for its banks as euro-area governments prepared for another round of talks on the country’s financial crisis.

Greek bank deposits plunged to their lowest level in 10 years in February as a political standoff between the government and the country’s creditors raised the prospect of a possible euro exit.

Germany has dismissed Greek demands to pay World War Two reparations after leftist Prime Minister Alexis Tsipras accused Berlin of using legal tricks to avoid paying compensation for the Nazi occupation of his country.

Has the European Central Bank gone feral? If it has, this is an appalling vista which must be dealt with. But it’s not clear how, writes Brian Lucey.

Greece’s new leftist government appealed to the Central Bank yesterday to keep its banks afloat and vowed to respect EU rules as it seeks a negotiated solution with eurozone partners to reduce its debt burden.

Greece’s central bank has moved to protect its banks from any fallout from the general election, asking the European Central Bank to approve a standby domestic emergency funding line, a Bank of Greece official said yesterday.

Greece’s economy shrank 6.2% on an annual basis in the second quarter, a slump that is expected to persist as the government scrambles to nail down billions in additional cuts to keep international bailout funds flowing.

Limits on how much cash can be withdrawn from ATMs, border checks, and currency controls may be imposed if Greece quits the single currency.

In Athens, the homeless are on the streets in growing numbers, soup kitchens feed twice as many people as a year ago, and the poor are rummaging in rubbish bins in search of scrap to sell.

The burden other eurozone states could bear gives them a powerful incentive to keep Greece in the currency club, writes Paul Carrel

“WE require a head — yours or Harry’s”.

Greece named former bank chief Lucas Papademos as its new Prime Minister today after four days of power-sharing talks.

A FORMER deputy head of the European Central Bank emerged yesterday as frontrunner to become Greek prime minister, as party leaders bargained over who will lead a “100-day coalition” to push through a bailout before the nation runs out of money.

GREEK protesters clashed with police and set fire to cars and a hotel in central Athens yesterday as tens of thousands marched against austerity measures aimed at pulling the country out of a debt crisis.

Riot police fought running battles with mourners after the funeral today of the Greek teenager whose shooting by officers set off waves of rioting across the country.

A senior strategist with Ulster Bank is warning that another interest hike by the European Central Bank could happen as early as next week.

POLICE in southern Greece today questioned bank staff after €6.2 million vanished from its vault.

EUROPEAN Central Bank council member Ernst Welteke has said there is no reason to lower borrowing costs for now as three interest rate cuts in the past eight months should be enough to spur an economic recovery.