The emergency central bank funding being provided to Greek banks is temporary, but flexibility on how long it lasts may be necessary during a “systemic crisis”, the European Central Bank's Peter Praet has said.
The ECB chief economist, speaking to Portuguese newspaper Jornal de Negócios, said it was "a topic for politicians to discuss" what was needed from the Greek government.
Greece's finance minister meets his euro zone peers and ECB President Mario Draghi today to discuss how to proceed with the Greek bailout programme, which runs out at the end of this month.
The ECB has control over the Emergency Liquidity Assistance on which Greek banks now depend.
The solvency of Greece's banks is tied closely to that of the state, which needs the funding tied to its bailout programme.
A failure to agree a deal for Greece could accelerate deposit outflows from Greek banks, which have increased as EU negotiations have stalled.
Should the banks become insolvent, the ECB would have little choice but to cut off the ELA supply.
