An agreement among the Eurozone leaders was not enough to persuade the Governing Council of the European Central Bank to give the green light for a much needed increase of the Emergency Liquidity Assistance to Greece, according to Reuters.
Greek banks have been closed and capital controls have been imposed since June 27. Reports claim that this status quo will now remain until Wednesday. The current government decree, which keeps banks closed and capital controls in place until tonight, expires at midnight on Monday and a New Act of Legislative Content will have to be signed for the extension.
The bailout deal agreement among the Eurozone premiers is only the first step in securing the financial support of the European Stability Mechanism to Greece. The Eurozone parliaments will have to ratify the deal, with the Greek parliament voting first within the next few days.
Securing access to ESM funds is an urgent matter for the Greek government. On July 20, it will have to pay 3.5 billion euros of bond payments to the ECB.
The Eurozone’s finance ministers are currently convening to work out a bridge deal for Greece to cover its short term payments.