The ECB will maintain aid to Greek banks – Puls Biznesu

As he writes dpa agency, the ECB’s decision means that there has been no implementation of the “drastic scenario”, assuming interruption of aid after the failure of talks between the government in Athens and Greece’s international creditors.

The ECB stipulated that could in again at any time revise its decision.

The Communication also said that the head of the Greek Central Bank Janis Sturnaras promised to do everything to “ensure financial stability” of the country and avoid a collapse of the Greek economy.

The Greek banks are doomed for months on the financial support of the ECB through emergency loans (ie. ELA – emergency liquidity assistance). It is now their only source of funding. The situation deteriorated further due to the reactions to the crisis of bank customers who pay with their savings accounts to bring them abroad.

Credit ELA can be paid properly only banks that are experiencing temporary difficulties and are considered to be solvent. Since there are doubts as to whether Greek banks meet these criteria, the policy of granting them loans is disputed.

Loans of this type are granted not directly by the ECB, but by national emission banks which bear the financial responsibility for them. 25-seat Governing Council, however, must agree. In turn, the blocking of aid is required 2/3 majority composition of the Governing Council.

The Greek parliament agreed in the night from Saturday to Sunday 5 July to conduct a referendum on the conditions of the aid program, presented by international lenders. The referendum proposed a day before Greek Prime Minister Alexis Cipras and asked the parliament to hold a request for his.

Cipras called on Greeks to vote in a referendum against the proposed by creditors, in his opinion in the form of an ultimatum, the conditions for further aid to Greece.

On Saturday, finance ministers of the euro zone, without the Greek Minister, decided that an aid program for Greece, which expires on June 30, but will not be extended.

The government in Athens strive for it, that an aid program has been extended in order to gain time for a referendum on the conditions for support set by lenders. Rejection of requests Greece means that the country does not receive the last installment of aid in the amount. 7.2 billion.

In February the Eurogroup and the IMF agreed to extend an aid program for Greece by four months, until 30 June, to at this time to negotiate the conditions for unblocking the last installment of support. Ciprasa leftist government wanted to alleviate those conditions, claiming that imposed by the “troika” belt-tightening has disastrous consequences for Greek society and the economy. For four months, however, it failed to negotiate a compromise.