ECB Provides More Funds for Greek Banks

The European Central Bank raised the ceiling on emergency liquidity Greek banks can draw from the country’s central bank for a third time in six days, a banking source told Reuters on Monday, declining to say by how much.

The ECB’s governing council held a teleconference on Monday to discuss extending the emergency liquidity assistance after Greek savers pulled about 4.2 billion euros from Greek lenders last week on fears Athens may fail to reach a deal with lenders.

“The governing council raised the ELA cap and will convene again via teleconference at any time necessary,” the source said, speaking on condition of anonymity.

The ECB raised the ELA ceiling by 1.1 billion euros to 84.1 billion euros on June 17. It raised it by a further 1.8 billion euros on Friday, according to a government official.

Sources in Frankfurt and in Brussels said pre-orders for deposit withdrawals for Monday had already reached 1 billion euros – after savers pulled over 4 billion euros out of their banks last week.


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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell