TIRANA, April 22 – Regional central banks have all forced the subsidiaries of Greek banks operating in their countries to eliminate exposure to Greek risk in order to shield themselves and minimize the danger of contagion in case the negotiations between the Greek government and the eurozone do not bear fruit, Greece’s Kathimerini reports.
The central banks of Albania, Bulgaria, Cyprus, Romania, Serbia, Turkey and the Former Yugoslav Republic of Macedonia are reported to have all forced the subsidiaries of Greek banks operating in those countries to bring their exposure to Greek risk such as bonds, treasury bills, deposits to Greek banks, loans down to zero.
“This quarantine was deemed necessary after the aggressive rhetoric of the new Greek government – particularly in the first few weeks after the election – regarding a debt restructuring, the non-completion of the creditors’ assessment and so on,” Kathimerini reports.
Greek banks account for one-fifth of Albania’s banking system.
