Greek banks’ ECB, ELA funding up in December
European Central Bank funding to Greek banks rose by 2.55 billion euros in December, while emergency liquidity assistance (ELA) from the country’s central bank rose by 370 million euros,
Turnover in Greek industry slumped by 11.7 percent on an annual basis in November, the Hellenic Statistical Authority (ELSTAT) said yesterday, while in the 12 months to end-November the total decline amounted to 5.7 percent yearon-year. New orders in industry posted an 8.9 percent decline in November. the Bank of Greece said yesterday. Greek banks depend on central bank funding for liquidity. Lower emergency funding from the Bank of Greece helps lenders boost their net interest income as borrowing from the ECB is about 2 percentage points cheaper than ELA funding. ECB funding to Greek banks rose 63.23 billion euros from 60.68 billion in November, while emergency liquidity assistance from the Bank of Greece increased to 9.79 billion euros from 9.42 billion.
The Greek state coffers are set to receive over 800 million euros as the net profits of the Bank of Greece reached 831.1 million euros last year, more than twice 2012’s earnings of 318.6 million, while 817.8 million is to be transferred to the state.
The European Invest- ment Bank announced plans yesterday to loan 150 million euros to small and medium-sized companies in Serbia, funds aimed at helping the Balkan state improve infrastructure as it integrates more closely with the European Union. The loan is the first installment of up to 500 million euros that the EIB, the EU’s long-term financing arm, has set aside for lending to companies involved in energy, health, industry, tourism, trade and services. The investment bank has invested more than 4 billion euros in Serbia since 2001 as the country has steadily emerged from the wars that followed Yugoslavia’s collapse in the 1990s and put itself on the path toward EU membership. As well as investment from the EIB, Austria, Germany, Greece and Norway have all poured money into the country, helping it register steady growth in recent years.