ECB Raises Greece’s ELA to 80.2 Billion Euros

The European Central Bank raised the cap on emergency liquidity assistance Greek banks can draw from the country’s central bank by 200 million euros, taking the ceiling to 80.2 billion euros, a banking source told Reuters on Wednesday. (Tweet This)

“This leaves an unused liquidity buffer of 3 billion euros,” the banking source said. “The reason for the small increase was that deposit outflows have stabilised at very low levels.”

The source said that the ECB held a “long and exhaustive” discussion on the “haircut” or discount applied to collateral offered by Greek banks but that no decision was made on raising the haircut.

The ECB has raised the cap in increments, keeping pressure on Athens to strike a deal with its creditors over economic reforms required to unlock remaining bailout aid.

The move comes as cash-strapped Athens scrambles to reach a cash-for-reform deal with its euro zone partners and the International Monetary Fund as debt repayments loom next month.

via CNBC

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza