ECONOMY

ECB lowers Greek ELA funding cap

ecb-lowers-greek-ela-funding-cap

The European Central Bank lowered the cap on emergency liquidity assistance (ELA) Greek banks can draw from the domestic central bank by 3.8 billion euros to 72 billion euros, the Bank of Greece said on Thursday.

The move reflected an improvement in liquidity conditions in Greece’s banking sector, helped by the stabilization of private sector deposit flows and the recapitalization of the country’s main lenders, the Greek central bank said.

Greek banks have relied on emergency liquidity assistance since February after being cut off from the ECB’s funding window. Emergency funding is more costly than borrowing from the ECB.

[Reuters]