ECB lowers Greek banks’ ELA cap to 4 bln euros

The European Central Bank has lowered the ceiling on emergency liquidity assistance (ELA) Greek banks draw from the domestic central bank by 900 million euros to 4 billion euros, the Bank of Greece said on Thursday.

The move reflected improved liquidity conditions, taking into account private sector deposit flows and banks’ access to wholesale financial markets, it said.

The ELA ceiling is valid through to January 24.

Greek banks have relied on ELA since February 2015 after being cut off from the ECB’s funding window.

Emergency funding is more costly than borrowing directly from the ECB.

[Reuters]