Tullius

“This is what they came up with in lieu of a solution: The ECB allowed the Greek government to issue worthless IOUs (or, more precisely, short-term treasury bills), that no private investor would touch, and pass them on to the insolvent Greek banks.21 The insolvent Greek banks then handed over these IOUs to the European System of Central Banks22 as collateral in exchange for loans that the banks then gave back to the Greek government so that Athens could repay the ECB.”
― Yanis Varoufakis, And the Weak Suffer What They Must?: Europe's Crisis and America's Economic Future