Calamos Supports Greece
GreekReporter.comGreek NewsEconomyECB Extends Greek ELA by 600 Million Euros

ECB Extends Greek ELA by 600 Million Euros

ECB

Today, the European Central Bank (ECB) decided to increase the maximum amount of Emergency Liquidity Assistance (ELA) that Greek banks can receive from the country’s central bank by a further 600 million euros.

The decision was made following a teleconference held regarding the issue earlier today. The ECB Governing Council held a meeting to set the limit, which policy makers increased by another 500 million euros to 68.8 billion just last week, on March 5. The Governing Council is expected to review the level yet again next week, most likely on March 18.

The agreed amount matches the request submitted by the Greek central bank, while the ECB is reviewing the ELA on a weekly basis, amid concerns that the banks will rather use their funds to finance the Greek government, in what is seen as a violation of European Union law. Moreover, according to an unnamed ECB official, this reflects Frankfurt’s will to closer monitor political and financial developments in Greece. Commenting on the issue prior to the decision, Germany’s central bank President Jens Weidmann highlighted that “the financing of the Greek state via banks, which then access monetary-policy operations or ELA funding from the Greek central bank, creates obvious concerns over monetary-state financing.”

See all the latest news from Greece and the world at Greekreporter.com. Contact our newsroom to report an update or send your story, photos and videos. Follow GR on Google News and subscribe here to our daily email!



Related Posts