The European Central Bank (ECB) raised on Monday again – the third time since Wednesday – the level of emergency funding for Greek banks – reported a source in Athens. According to him, the authorities of the ECB may again increase this assistance “at any time”.
The source did not reveal, by which the sum was increased funding. It added that the ECB may collect the authorities “at any time” to take another decision on the aid if it becomes necessary, “even today or tomorrow”, in connection with the results of talks in Brussels between Greece and its creditors.
In the evening on Monday will begin the euro zone summit on the situation Greece is in danger of insolvency. The summit will be preceded by an extraordinary meeting of finance ministers of euro zone countries and meeting European Commission President Jean-Claude Juncker, the Prime Minister of Greece Alexis Ciprasem.
Decisions ECB emergency funding for banks in Greece are associated with mass by the Greeks withdrawal of deposits from domestic banks. Already in late April, after the informal Eurogroup summit in Riga, which like all the previous did not bring any breakthrough in negotiations with Athens, ECB chief Mario Draghi said that “the ECB will provide emergency financial assistance (ie. ELA – emergency liquidity assistance) for so long how long Greek banks would remain solvent and financial provisions “.
It is therefore considered that the ECB will separate the financial drip while Greece does not become permanently insolvent. If, however, is not reached – an agreement to ensure that Athens will receive financial aid rapidly, the ECB will be under great pressure and it will be urged suspension of aid would not pump money into the banking system, which can collapse. (PAP)
awl / ap /
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