Greek stocks and bonds in turmoil in the face of European Central Bank curbs

Growing fears over the fate of Greece saw its banks’ share prices tumble and government bond yields surge to record high.

The European Central Bank is poised to place greater restrictions on how much money Greek banks can borrow from it and raise the haircuts they must take on bonds they offer in return for funding.

Shares in Bank of Piraeus fell more than 13% while Attica and Alpha banks lost between 4% and 5%.

Yields on three-year government bonds hit a record 28.6% as the Greek authorities try to raise the cash for the next payment to the IMF.

Two-year yields were at almost 30% while 10-year ones were up to 13.6%.

Separately John Hourican, former boss of Royal Bank of Scotland’s markets business who quit after its £390 million Libor fine, is leaving as chief executive of Bank of Cyprus for personal reasons.

He joined the troubled Cypriot lender in 2013.