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ECB extends liquidity for Greek banks, increases funds with extra €3.3bn

Te European Central Bank has reportedly agreed  to give a two-week extension on Emergency Liquidity Assistance for Greek banks and to raise the emergency funding available to Greek banks to €68.3bn..

“The €3.3bn increase in the so-called Emergency Liquidity Assistance (ELA) is critical for Greece’s banks,” note the BBC, adding that “the Greek central bank is said to have requested an additional €10bn of emergency funding”.

The European Central Bank has approved a 68 billion euro, two-week extension on emergency liquidity for Greek banks, Reuters reported, citing a source.

The ECB had already raised the Emergency Liquidity Assistance (ELA) cap to about 65 billion euros last Thursday. The Greek central bank had requested an extension of about 10 billion euros, the source told Reuters.

The added assistance comes as Greece tries to negotiate a financing deal with European partners. The country on Thursday will request that the euro zone extend a “loan agreement” for up to six months, though Germany has said that no such deal is on the table and Athens must abide by the terms of its existing international bailout. (CNBC)

 

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4 comments

  1. BEWARE!!! The very same scenario happened in Ireland, with ELA funds being pumpted into Irish banks to “help”, while deliberations were under way within the Irish government on how to deal with this. When the amount reached 100 billion, the tap was closed and Ireland was told it had to accept “the programme” or it would stay closed. Prompting the late B. Lenihan (the Irish FinMin) to declare that we were bounced into a programme ELA funds were used to blackmail the country, not to assist it. If I’m not mistaken, Cyprus had a similar experience…

  2. what do you mean ‘beware’? should we give money back? ELA-FYGE? I’m sure Greeks are aware of the risks as both BoG governor + Varoufakis took notice of Irish and Cyprus banks issues.

  3. I hope the did… The Irish found out the hard way that Jean Claude Trichet was not to be trusted. By that time, it was however too late. I hope Greece doesn’t have a similar experience with Draghi…

  4. your link… not necessary. I have the file in Varoufakis File post