ECONOMY

ECB said to raise Greek emergency bank aid before bailout vote

ecb-said-to-raise-greek-emergency-bank-aid-before-bailout-vote

The European Central Bank increased the emergency liquidity available to Greek lenders as the country’s lawmakers prepared for a second vote on a bailout package, people familiar with then matter said.

The ECB’s Governing Council agreed in a telephone conference on Wednesday to raise the cap on Emergency Liquidity Assistance by 900 million euros ($981 million), the people said, asking not to be named as the call was private. An ECB spokesman declined to comment. The ceiling on the funds was previously at 89.5 billion euros.

Greek Prime Minister Alexis Tsipras is back in the Greek parliament on Wednesday to seek support from opposition parties on reforms that sections of his own party won’t accept. A vote on two pieces of legislation required by creditors to qualify for bailout negotiations is expected in Athens around midnight.

ECB President Mario Draghi persuaded his colleagues to raise ELA by 900 million euros last week, the first increase since late June, after the country’s parliament passed prior actions that allow talks to start on an aid package worth as much as 86 billion euros.

The extra liquidity helped Greek banks reopen on Monday for basic services, though capital controls remain in place.

[Bloomberg]