7-Billion-Euro Deposits Outflow from Greek Banks

depositsDeposits outflow from Greek banks continued in April, reaching a total of 7 billion euros, according to Bloomberg. However, the European Central Bank (ECB) increased its emergency liquidity assistance (ELA) in order to support the Greek banks.

“The ECB’s Governing Council opted against tightening terms of Emergency Liquidity Assistance and raised the cap on funding by 1.1 billion euros to 80 billion euros in a telephone conference on Tuesday, according to people familiar with the matter. The decision followed a statement by euro-area Finance Ministers on Monday recognizing Greece’s new willingness to meet the requirements for more bailout cash,” noted the Bloomberg article.

Now Greece needs to turn its promises into political actions to satisfy its creditors and access the finance aid, or otherwise the country is in danger of running out of money in the coming weeks, reported Bloomberg.

Furthermore, “Monday’s meeting also opened the door to partial payments from 7.2 billion euros remaining in Greece’s rescue program. Dutch Finance Minister Jeroen Dijsselbloem, who leads the euro-area Ministers’ group, said funds could be disbursed as Prime Minister Alexis Tsipras’ government passes pieces of economic legislation.”