Photo: PAP
epaselect GERMANY FINANCE ECB (European Central Bank, Frankfurt)
ECB froze June 26 for financial assistance Athens at 89 billion euros. The Bank of Greece (central bank) has asked the ECB with a request to increase this ceiling by 3 billion – EFE writes, referring to the media, because the ECB did not disclose, by which assistance sought by Athens.
Executive Board decided on this during a teleconference held after the Sunday referendum in which the Greeks rejected proposals to creditors.
Credit ELA can be granted only if the ECB receives adequate collateral from Greece – reserved the bank.
“The financial situation of Greece has a serious impact on Greek banks since the mortgage they use, based largely on Greek government bonds,” – the statement said.
“In this situation, the Governing Council decided today that verify the market value of the assets that the Bank Greece accepts as ELA “- reads the release.
This means that the ECB is de facto extremely tightened conditions for the grant of rescue funding for the Greek banking sector – writes AFP.
The Central Bank of Greece can issue money with the support of ELA, the pledge, among others government bonds, whose real value decreases due to the financial situation of the country – explains the AP.
The Governing Council has provided Also in the statement that “closely following the situation on the financial markets and its potential implications for the run (by the ECB) monetary policy and the effects of risks to price stability in the euro area.”
ECB, said: “The Governing Council is determined to use all the instruments, which are available under its mandate.”
Bank, based in Frankfurt, is trying to reassure the markets, which thanks to this kind of assurances, repeated a long time, on Monday reacted relatively calmly on the outcome of the Greek referendum.
“Rightly or not, but the market has placed great trust in the fact that the European Central Bank now has more defense mechanisms the euro zone than in the years 2011 – 2012 “- said on Monday head of global strategy fund Standard Life Investments Andrew Milligan.
Monday’s Statement of the ECB means de facto that threatens Greek banks – according to AP – “suffocation from lack of cash”, which urgently need to supply ATMs in the coming days.
Furthermore, the listing of Greek debt will fall even lower, probably because the rating agency Fitch announced on Monday that the risk of a Greek exit from the euro zone “increased dramatically” after the referendum.
Greek banks, closed since last Monday, will remain closed yet on Tuesday and Wednesday, and living ATM withdrawal limit will remain at 60 euros – said head of the association of Greek banks Luka Kaceli.
ECB a few months Greek banks provide emergency funding to help them maintain liquidity to the mass withdrawal of bank deposits by Greeks who fear the collapse of the financial system.
On Friday Kaceli admitted that banks in Greece are provided liquidity only until Monday, in the form of reserves of the order of 1 billion euros.
Credit ELA are of fundamental importance for the Greek banking system, and the collapse of the banking sector is the most serious of the many threats faced by Greece.
Therefore, the Bank of Greece addressed early on Sunday evening to the ECB asking for the abolition of the limit of rescue loans to ensure liquidity of the Greek banking sector.
However, as recently reported a source in the ECB – its management is becoming more critical mood for funding through the ELA.
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