ATHENS Jan 12 The European Central Bank lowered
the cap on emergency liquidity assistance (ELA) Greek banks draw
from the domestic central bank by 4.2 billion euros to 46.5
billion euros ($49.49 billion), the Bank of Greece said on
The move reflected improving liquidity conditions and the
stabilisation of private sector deposit flows, it said. The ELA
ceiling is valid up to Feb. 1.
Greek banks have relied on emergency liquidity assistance
(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.
In June last year the ECB reinstated Greek banks' access to
its cheap funding operations, allowing lenders to reduce their
dependence on the emergency liquidity lifeline.
($1 = 0.9396 euros)
(Reporting by Renee Maltezou and Angeliki Koutantou)