ELA moves to the rescue of Greece – Banker

Management
 European Central Bank agreed to an extraordinary meeting
 increase emergency assistance (ELA – emergency liquidity line) for Greek
 Banks – news agencies reported citing unofficial sources.

 
 
 
 
 

Limit emergency loans to Greek banks has been
 increased for the second time this week. On Wednesday, it increased by EUR 1.1 billion to
 84.1 billion. The newspaper “Ekathimerini” says that the Greeks asked for additional
 3.5 billion euros. Yet
 early February limit ELA was 59.5 billion euros.

 

According to Bloomberg informants only from the beginning of June
 The Greeks paid out of the banks more than four billion euros. What’s more, the rate of outflow
 deposits speeds of days for the day: only the last two days banks
 left 1.85 billion.
 

At the end of April (the last official figure) sum
 contributions collected in Greek banks amounted to 145 billion euros. Now it is
 it’s probably less than 140 billion euros, and so much more than the time
 Greece joined the euro area.

 

Wyrwa in liabilities was caused by the loss of deposits patched
 is the Greek emergency loans from the central bank (ELA). Cash from ELA
 interest rate is higher than standard loans with the ECB and shall be granted for
 the risk of the Bank of Greece. Greek
 banks have been cut off from borrowing from the ECB at the beginning of February. On loans
 with ELA’s consent is required board of the European Central Bank.
 

If by the end of the month Greece will not receive 7.2 billion euros
 loans from euro-zone countries, national insolvency risk of the IMF and the ECB,
 which may end up bankrupt or ordinance Greek banks’ holidays
 bank “. In this scenario, Greek banks can not be opened
 Monday, and the Greeks
 on your own skin will feel “variant of Cyprus”.

 

K.K..