| 17.7°C Dublin

ECB's Weidmann: 'No more emergency loans for Greece'

Close

Jens Weidmann, president of the Deutsche Bundesbank

Jens Weidmann, president of the Deutsche Bundesbank

Bloomberg

Jens Weidmann, president of the Deutsche Bundesbank

The head of Germany's Bundesbank has said that he is opposed to more emergency funding for Greece, adding that debt in the Eurozone has entered the "danger zone”.

Speaking to the weekly Focus magazine Jens Weidmann said: "Until the autumn, an improvement in the economy had been discernible. But the new [Greek] government has gambled away a lot of trust.”

He added: "I am opposed to an increase in the emergency loans.”

As the head of Germany’s Central Bank, Mr Weidmann  wields a strong influence on the European Central Bank's decision-making governing council, which he also sits on.

In the text of a speech to be delivered at a conference in Frankfurt he added: "In the euro area we are already in the danger zone - at least with regard to public debt standing at 91pc and corporate debt at 105pc."

Athens and Eurozone officials are currently trying to hammer out a deal on Greece’s multi billion euro debt.

Without a quick deal with bailout lenders, Athens may not have enough cash to pay €1.7bn in wages and pensions at the end of the month and make a €450m repayment to the International Monetary Fund on April 9.

Eurozone authorities have long feared that a bank run would be the most likely route to an accidental “Grexit”.