The European Central Bank (ECB) has decided to raise the Emergency Liquidity Assistance (ELA) to Greek banks. The ECB will increase funding from 68.9 billion euros to over 71 billion.
The increase is the biggest this month and means the cap has risen by more than 10 billion euros since creditors lost access to normal ECB funding lines in February, Bloomberg reported. This move will help Greece meet the expanding needs of banks and the Greek government.
Greece’s finances have started deteriorating with Eurozone officials pressuring Greek Prime Minister Alexis Tsipras to present the country’s new economic reforms, while the ECB made it illegal for domestic banks to increase their holdings of short-term government debt.
The recent ELA increase is larger than the two previous weekly increases of 400 million euros on March 18 and 600 million euros on March 12, which may suggest that Greece’s ability to meet creditor demands is constantly worsening.
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