ECONOMY

ECB lowers ELA cap for Greek banks as liquidity improves

ecb-lowers-ela-cap-for-greek-banks-as-liquidity-improves

The European Central Bank on Tuesday lowered the ceiling for emergency liquidity assistance (ELA) Greek lenders can tap from the Greek central bank to 87.9 billion euros from 88.9 billion euros, the Bank of Greece said on Wednesday.

"The reduction by 1.0 billion euros of the ceiling reflects an improvement in the liquidity of Greek banks," the central bank said in a statement.

Greek banks, which were shut for three wqeeks over the summer, have relied on emergency funding in recent months after a wave of deposit outflows, prompted by political uncertainty and the protracted bailout negotiations between Greece and its international lenders. [Reuters]