Frankfurt (Reuters) – The ECB also holds for the “No” of the Greeks to the recent rescue offers the creditor the emergency aid to Hellas-Geldhäuser upright.
However
The Governing Council kept the upper limit for the so-called ELA emergency loans at the level of 26 June, as the European Central Bank (ECB) announced in Frankfurt on Monday. According to insiders, the framework for the liquidity support is thus continued at around 89 billion euros. According to information of the newspaper “Die Welt” had applied for an increase of around six billion euros, the Greek central bank.
Without these emergency loans – in the professional world ELA called – threatens the institutions the money going out. For businesses and individuals who emptied because of the uncertainty as to whether the country can remain in the euro, massively accounts. ELA-aids be awarded against collateral from Athens’ central bank – but decides on the granting of the Governing Council.
The monetary authorities also increased the discount to the value of the pledges that must leave the Institute in their home central bank for ELA funds. This discount – a so-called haircut – is charged for safety reasons. The financial situation of Greece have an impact on the banks, the ECB said. Because the pledges would be based to a considerable extent on State bound titles. The Institute continued last a mainly Greek government securities with short maturities (T-bills) and by the government guaranteed bank bonds and loans. Insiders of the Greek banking sector, according to one of the haircut was increased for some collateral by about ten percent. The consequences are however limited, banks would still have enough pledges, the person said.
The ECB also stated they observe the situation on the financial markets and the possible consequences for the Preistabilität the currency area and the monetary policy carefully. The Governing Council is determined to use all instruments within its mandate. Greek banks are already closed for a week for the most part and apply capital controls. According to the Greek Banking Association, the financial institutions are to remain closed on Tuesday and Wednesday.
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