ECB to raise ELA cap for Greek banks
The European Central Bank increased the cap on emergency liquidity for Greek lenders for the fourth time in less than a week, Bloomberg quoted a person familiar with the matter. The ECB Governing Council raised the limit on the funds in a telephone conference on Tuesday, the source said, without specifying the size of the increase.
Policy makers lifted Emergency Liquidity Assistance by about EUR 1.9 bln o 87.8 bln on Monday, and are setting the aid level almost daily as Greece edges closer to a potential default. Prime Minister Alexis Tsipras is running out of time to reach a deal with his country’s creditors and end a fivemonth standoff over bailout payments that risks splitting the euro.
After a day of talks on Monday, leaders from Greece’s 18 fellow eurozone countries agreed that Tsipras’s government was finally getting serious after it submitted a set of reform measures that began to converge with the terms demanded by creditors. They agreed to step up the pace of negotiations to secure a breakthrough on Wednesday that leaders can sign off at the end of the week.