ECB lowers ELA cap for Greek lenders

The European Central Bank lowered the ceiling for emergency liquidity assistance (ELA) that Greek lenders can tap from the Greek central bank by 7.8 billion euros to 77.9 billion euros, the Bank of Greece said on Thursday.

“The reduction of 7.8 billion in the ceiling reflects an improvement of the liquidity situation of Greek banks amid a reduction of uncertainty and the stabilization of private sector deposits flows, as well as the progress achieved in the recapitalization process of Greek banks,” it said in a statement.

Greek banks, which were shut for three weeks in late June and July, have relied on costly emergency funding since February when the ECB shut them out of its normal liquidity operations amid political uncertainty and protracted bailout negotiations.

[Reuters]