ECB 'Acts' To Head Off Greek Bankruptcy

The European Central Bank has moved to stave off the bankrupcty of Greece by guaranteeing loans from the country's central bank, a German newspaper has reported.

The ECB's governing council decided at a meeting Thursday on the move which will give Greece access to another four billion euros (almost $5 billion) of funds and ensure its financial survival until September, Die Welt said on Saturday.

The "troika" of creditors -- the International Monetary Fund, the European Union and the ECB -- are to decide in September whether to unlock a 31.5-billion-euro loan disbursement as part of Greece's latest 130-billion-euro rescue package.

The ECB decided Thursday to raise the limit on the amount of treasury bills the Bank of Greece could accept as collateral for emergency aid to seven billion euros from three billion, Die Welt said, quoting central bank sources.

EU and IMF auditors are due to hold a final meeting with Greek officials this week to discuss budget cuts needed to unlock the next tranche of aid in September.