The European Central Greece emergency loans of 60 approved billion euros and thus increasing the scope of the central bank. In order for the financing of Greek banks seems the time being.
The financing of the Greek banks seems despite the limited access to funds from the European Central Bank (ECB). The Governing Council acknowledged the Greek central bank for information on the “world” wide latitude for emergency loans.
According to the decision of Wednesday evening, the national central bank must assign liquidity support to a height of around 60 billion euros, was it in central bank circles. An ECB spokesman declined can not comment.
The Governing Council decided on Wednesday evening, Greek government bonds to no longer accept as collateral for loans from the Eurosystem. Thus, the country’s banks have only limited access to ECB funds because they have generally only limited by other securities that meet the rating requirements of the ECB. The national central bank may be awarded in emergency loans, so-called Emergency Liquidity Assistance (ELA). Here, the Governing Council has in turn a veto.
emergency liquidity of the national central bank
the end of December, the Greek banks had lent 56 billion euros in the euro system, as shown in the balance sheet of the Central Bank of Greece apparent. The now significantly expanded framework for ELA loans is sufficient, therefore, almost completely replace the previous loans by the Eurosystem emergency liquidity of the national central bank. So far should the Greek banks have used only ELA funding in mid single-digit billions.
The government and central bank in Greece had stressed by the ECB decided that the financing of the Greek banks is further ensured.
on the current developments in Greece read more in the FOCUS online news ticker.
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