Lenders to require a significant ECB boost
Bank officials said on Wednesday that a realistic target for the reopening of branches would be next week, provided of course that the country fulfills the commitments made to its creditors for the completion of the agreement reached on Monday.
The same sources note that for banks to pull their shutters up after three weeks of closure, it will take a significant boost of the local credit system’s liquidity by the European Central Bank, first with a significant increase in the limit of emergency liquidity assistance (ELA). Yet even that cannot now be expected before Monday.
The ECB governing council will convene again on Thursday and may respond to Parliament’s approval of the measures introduced as prior actions by extending the ELA limit by a small amount, to keep ATMs operating till the weekend.
Meanwhile, the stock market will require the reopening of banks that process its transactions to start trading again. However, lenders are said to have asked for the bourse to start trading a few days after banks reopen, as the capital controls would dramatically restrict stock market activity.
