The European Central Bank reduced the emergency liquidity assistance (ELA) towards Greek banks by 100 million euros, at the request of the Bank of Greece.
According to the statement, the ECB’s Governing Council “did not object to an ELA-ceiling for Greek banks of €71.4 billion, up to and including Thursday, 10 March 2016, following a request by the Bank of Greece”.
The reduction reflects an improvement of the liquidity situation of Greek banks, amid a reduction of uncertainty and the stabilization of private sector deposits flows.
Greek banks have relied on emergency liquidity assistance (ELA) since February 2015 after being cut off from the ECB’s funding window. Emergency funding is more costly than borrowing from the ECB.
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