ECB keeps emergency liquidity for Greek banks at current level

13th July 2015, Comments 0 comments

The European Central Bank decided Monday to leave its stop-gap credit facility for Greece, known as Emergency Liquidity Assistance (ELA), unchanged at around 89 billion euros ($99 billion), an ECB spokeswoman said.

The decision by the ECB's board of governors came after eurozone leaders hammered out a bailout package for Greece in marathon talks in Brussels overnight.

The institution has kept its ELA cap unmodified since June 27, but last week tightened conditions as the leftwing government in Athens rejected reforms creditors had been demanding in exchange for aid.

Monday's deal requires Greece to push through a raft of market-oriented laws by Wednesday as a sign of good faith.

Only then will the 18 other eurozone leaders start negotiations over a three-year bailout worth up to 86 billion euros ($96 billion), Greece's third rescue programme in five years.

Until the package can take effect, the ELA is the only available source of financing for Greek banks and, by extension, the sole financial lifeline preventing the Greek economy from sinking.

Before reviewing its position, the ECB wants the Brussels deal to be approved by the various national parliaments in the single currency, a European source said.

At least eight parliaments must vote on the deal, with the German lower house even voting on it twice.

© 2015 AFP

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