The European Central Bank is resisting a key element of the Greek government’s new rescue plan, potentially leaving Athens with no source of outside funding when its international bailout expires at the end of the month.
Yanis Varoufakis, Greek finance minister, had proposed to European officials that Athens raise €10bn by issuing short-term treasury bills as “bridge financing” to tide the country over for the next three months while a new bailout is agreed with its eurozone partners.
But the ECB is unwilling to approve the debt sale. It will not raise a €15bn ceiling on treasury bill issuance to $25bn as requested, according to two officials involved in the deliberations.