ECONOMY

Greece’s ELA cap lowered on improved liquidity

greece-amp-8217-s-ela-cap-lowered-on-improved-liquidity

The European Central Bank has lowered the cap on the emergency liquidity assistance (ELA) that Greek banks can draw from the domestic central bank by 0.2 billion euros to 71.8 billion euros, the Bank of Greece announced on Thursday.

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

Greek banks have relied on emergency liquidity assistance since February after being cut off from the European Central Bank’s funding window.

Emergency funding is more costly than borrowing from the ECB.

[Reuters]