The European Central Bank (ECB) said on July 6 that it was maintaining emergency liquidity assistance for Greek banks at the June 26 level.
“ELA can only be provided against sufficient collateral,” the ECB said, adding that the financial situation of Greece has an impact on Greek banks since the collateral they use in ELA relies to a significant extent on government-linked assets.
The ECB said that it had made the decision after discussing a proposal from the Bank of Greece.
The ECB’s Governing Council had decided to adjust the haircuts on collateral accepted by the Bank of Greece for ELA.
“The Governing Council is closely monitoring the situation in financial markets and the potential implications for the monetary policy stance and for the balance of risks to price stability in the euro area. The Governing Council is determined to use all the instruments available within its mandate,” the ECB said.
(Image: Moi Cody/freeimages.com)