7 Jul 2015
ECB’s ELA unchanged… for now – Danske Bank
FXStreet (Edinburgh) - Senior Analyst at Danske Bank Flemming Nielsen assessed the recent decision by the ECB to leave intact its ELA scheme for Greek banks.
Key Quotes
“ECB yesterday decided to keep the cap for Emergency Liquidity Assistance (ELA) for Greek banks at its current level (EUR89bn) but increased the haircuts used on collateral used by Greek banks”.
“Greek banks are still believed to have sufficient collateral, so the ECB decision is not expected to force Greek banks to cut their lending from ECB immediately”.
“The Greek Bank Association announced that banks will remain closed at least until Thursday”.
Key Quotes
“ECB yesterday decided to keep the cap for Emergency Liquidity Assistance (ELA) for Greek banks at its current level (EUR89bn) but increased the haircuts used on collateral used by Greek banks”.
“Greek banks are still believed to have sufficient collateral, so the ECB decision is not expected to force Greek banks to cut their lending from ECB immediately”.
“The Greek Bank Association announced that banks will remain closed at least until Thursday”.