ELA ceil­ing falls fur­ther

Kathimerini English - - Focus -

The Euro­pean Cen­tral Bank low­ered the cap on emer­gency liq­uid­ity as­sis­tance (ELA) Greek banks draw from the do­mes­tic cen­tral bank by 700 mil­lion eu­ros to 51.1 bil­lion eu­ros, the Bank of Greece said yes­ter­day. The move re­flected im­prov­ing liq­uid­ity con­di­tions in Greek banks and the sta­bi­liza­tion of pri­vate sec­tor de­posit flows, it said. The ELA ceil­ing is valid up to Novem­ber 16. Greek banks have re­lied on emer­gency liq­uid­ity as­sis­tance (ELA) since Fe­bru- ary 2015 after be­ing cut off from the ECB’s fund­ing win­dow. Emer­gency fund­ing is more costly than bor­row­ing di­rectly from the ECB. In June the ECB re­in­stated Greek banks’ ac­cess to its cheap fund­ing op­er­a­tions, al­low­ing lenders to re­duce their de­pen­dence on the emer­gency liq­uid­ity life­line.

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