Greek Lenders Ask for Liquidity Assistance, Pressure on ECB Rises

Officials at Greece's central bank say two of the country's lenders are seeking emergency liquidity assistance. According to reports by state media, Greece's Eurobank and Alphabank made the request for the assistance but noted the issue would be raised at the European Central Bank's governing meeting on January 22. The ECB has been under increasing pressure to take action at that meeting to stimulate the region's economy. The request for emergency liquidity assistance follows international market turmoil caused by the Swiss removal of a peg between the Swiss franc and the euro, and amid financial uncertainty in Greece ahead of a general election on January 25. Mujtaba Rahman, Europe practice head at Eurasia Group, explains what happens if no program or backstop for Greece is put in place by the Europeans.