ECB Lowers Funding Cup for Greek Banks by €1.1 Billion
The European Central Bank lowered the cap on Emergency Liquidity Assistance (ELA) Greek banks draw from the domestic central bank by 1.1 billion euros to 25.8 billion euros, the Bank of Greece said on Thursday.
The move reflected improved liquidity conditions, taking into account private sector deposit flows and banks’ access to financial markets, it said. The ELA ceiling is valid up to December 14 inclusive.
Greek banks have relied on emergency liquidity assistance (ELA) since February 2015, after being cut off from the ECB’s funding window. Emergency funding is more costly than borrowing directly from the ECB.
In June last year the ECB reinstated Greek banks’ access to its cheap funding operations, allowing lenders to reduce their dependence on the emergency liquidity lifeline.
ELA funding to Greek lenders dropped by 5.74 billion euros, or 20%, to 22.75 billion euros in October compared to the previous month.
You may be interested
Covid-19 Greece – 151 new casesmakis - Aug 07, 2020
The National Organisation of Public Health (EODY) announced 151 new cases of coronavirus in Greece on Thursday The total number…
Ikaria: The island of long lifePanos - Aug 07, 2020
The enchanting island of Ikaria is not only one of the most idyllic islands of the eastern Aegean but also…