ATHENS May 18 The European Central Bank lowered
the cap on emergency liquidity assistance (ELA) Greek banks draw
from the domestic central bank by 1.2 billion euros to 45.3
billion euros ($50.45 billion), the Bank of Greece said on
The move reflected liquidity conditions, taking into account
private sector deposit flows, it said. The ELA ceiling is valid
up to June 8.
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.
ELA funding to Greek lenders dropped by 300 million euros,
or 0.7 percent, in April compared to the previous month.
($1 = 0.8980 euros)
(Reporting by George Georgiopoulos)