ATHENS, April 27 (Reuters) - The European Central Bank lowered the cap on emergency liquidity assistance (ELA) Greek banks draw from the domestic central bank by 100 million euros to 46.5 billion euros ($50.62 billion), the Bank of Greece said on Thursday.
The move reflected liquidity conditions, taking into account private sector deposit flows, it said. The ELA ceiling is valid up to May 17.
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 700 million euros, or 1.6 percent, in March compared to the previous month, Bank of Greece data showed on Tuesday. ($1 = 0.9186 euros) (Reporting by George Georgiopoulos)