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ECB lowers ELA cap for Greek banks as liquidity conditions improve

Published 17/09/2015, 08:51
© Reuters. The European Central Bank (ECB) headquarters are pictured in Frankfurt

ATHENS (Reuters) - The European Central Bank on Wednesday lowered the ceiling for emergency liquidity assistance (ELA) Greek lenders can tap from the Greek central bank to 88.9 billion euros from 89.1 billion euros, the Bank of Greece said on Thursday.

"This reduction of 0.2 billion euros in the ceiling, requested by the Bank of Greece, reflects an improvement of the liquidity situation of Greek banks, amid a reduction of uncertainty and the stabilization of private sector deposits flows," the central bank said.

Greek banks, which were shut for three weeks over the summer, have relied on emergency funding in recent months after a wave of deposit outflows.

© Reuters. The European Central Bank (ECB) headquarters are pictured in Frankfurt

ELA funding to Greek lenders fell by 1.35 billion euros to 83.95 billion at the end of August, according to Bank of Greece data.

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