EUR 2.07 bn reduction to the financing of Greek banks from ELA in May

EUR 2.07 bn reduction to the financing of Greek banks from ELA in May

Athens, June 14, 2016/Independent Balkan News Agency

By Spiros Sideris

There was a reduction of 3.1% or EUR 2.07 bn to the financing of Greek banks from the temporary liquidity mechanism (ELA) of the ECB in late May, according to figures published by the Bank of Greece on Monday.

In particular, according to Reuters, the financing of the ELA, which is more expensive for banks compared to the financing from the European Central Bank, fell to EUR 64.81 bn late last month from EUR 66.88 bn in April.

The ELA liquidity mechanism is the only source of financing of the Greek banking system since last February, after the financing by the ECB stopped.

The reduction in funding from the ELA is recorded at a time when Greek banks expect that the Board of the ECB will adopt the exceptional acceptance of the issuing of securities or guarantees of the Greek State as collateral for direct funding from the Central Bank.