CORRECTED-Greek bank worries could worsen – ECB document

(Corrects story from April 16 throughout to cite ECB
document, not a speech delivered by Trichet)

MADRID, April 16 (BestGrowthStock) – The situation for Greek banks
remains difficult and could deteriorate further, according to a
European Central Bank document seen by Reuters.

The Greek banking system is availing itself of the liquidity
provided by the ECB and national central banks while the recent
changes to rules on accepting assets as security in exchange for
loans removed the risk banks would no longer be able to use
government bonds as collateral, says the document, taken by ECB
President Jean-Claude Trichet into a meeting of euro zone
finance ministers on Friday in Madrid.

The ECB will keep accepting BBB-rated debt next year in a
boon for Greece, and will exempt government bonds from new risk
penalties on lower-rated assets.

“Still the liquidity situation of Greek banks remains
difficult and could deteriorate,” the document says.

The document also says market worries remain after an aid
package announced last week to help Greece.

“Despite the commitments expressed in the statements by the
euro area heads of state and governments on 25 March and
Eurogroup on 11 April and the determination signalled by the
Greek government to implement the announced adjustment measures
for 2010, financial market tensions are persisting.”

Investment

(Reporting by Nigel Davies, editing by Dale Hudson)

CORRECTED-Greek bank worries could worsen – ECB document