18 Feb 2015
ECB extends ELA for Greek banks
FXStreet (Córdoba) - The European Central Bank agreed to boost the Emergency Liquidity Assistance (ELA) for Greek banks by €3.3 billion for a period of two weeks, according to media reports.
The ELA, which was launched by the ECB after it decided to stop accepting Greek bonds as collateral for funds, will reach a total amount of €68.3 billion. In two weeks, the ECB Governing Council could decide to extend the lifeline or cut it out. The Greek central bank will have to inform the ECB if banks need additional funding before then.
The ECB extension gives Greece some room to reach an agreement with its creditors over the country’s bailout program. According to latest reports, the Greek government is set to submit a request to extend a "loan agreement" on Thursday.
The ELA, which was launched by the ECB after it decided to stop accepting Greek bonds as collateral for funds, will reach a total amount of €68.3 billion. In two weeks, the ECB Governing Council could decide to extend the lifeline or cut it out. The Greek central bank will have to inform the ECB if banks need additional funding before then.
The ECB extension gives Greece some room to reach an agreement with its creditors over the country’s bailout program. According to latest reports, the Greek government is set to submit a request to extend a "loan agreement" on Thursday.