Wednesday, August 5, 2015

Greece: ECB keeps unchanged its emergency loans to banks – The Tribune.fr

No new pladond, at least for now. The Governing Council of the European Central Bank (ECB) maintained Wednesday, July 5 its emergency lending (ELA) in favor of Greek banks at current levels, and this for two weeks, told AFP.

The Bank of Greece had not asked for raising the ceiling of the loans, according to a source close to the central banks of the euro area. The ECB, interviewed, declined to comment on the report.



90.5 billion euros

In late July, the monetary institution in Frankfurt had decided to raise 900 million euro emergency loan ceiling ELA, last source of funding for Greek banks, bringing it to some 90.5 billion euros. The ECB had reopened the liquidity tap, stationed at 89 billion euros since the end of June, after the agreement reached between Athens and its creditors on the principle of a third plan of aid to the country, and the vote . first reforms by the Greek Parliament

Very weakened after withdrawals of over 40 billion euros since December, Greek banks are waiting for recapitalization – one of the topics of discussion between Athens and its creditors. A government source had estimated in late July, about 10 billion euros the immediate needs of banks in the country, also weighed down by the accumulation of bad debts.

The agreement of 13 July between Greece and its European partners on a plan to help more than 80 billion euros planned to spend 25 billion to this operation.

The bank shares falling

An evaluation the health of Greek institutions is expected in the coming weeks. The shares of Greek banks have fallen much since the reopening on Monday, the Athens Stock Exchange after five weeks of closure.

The Greek banking system already recapitalized twice since 2010 (once via creditors once private funds) was still deemed insolvent last fall by the ECB.

(With AFP)

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