ECB decides on Greek ELA and bank collateral
The governing council of the European Central Bank is convening on Wednesday to discuss whether to extend the limit of the cash flow granted to Greek lenders via the emergency liquidity assistance (ELA) facility of the Bank of Greece.
The meeting will be overshadowed by the increased outflow of deposits from local banks that in just two days have added up to an estimated 850 million euros – 350 million on Monday and half a billion on Tuesday.
Frankfurt will also examine the possibility of a further haircut on the value of Greek banks’ collateral, as ECB President Mario Draghi has insisted on this issue being discussed om Wednesday in the physical presence of board members instead of a teleconference.