La ECB increased by 200 million, from 80 to 80,2 billion euros, the ceiling on emergency loans granted to Greek banks through the Ela door which is managed by the Central Bank of Greece, at higher rates than the normal refinancing operations of the ECB and whose risks remain borne by the national central banks.
This was announced by official Greek sources, recalling that the ECB's governing council examines the performance of the Ela emergency desk on a weekly basis and, with a two-thirds majority, can decide on changes. This time, however, the increase was smaller than in the previous ones, as deposit outflows from Greek banks were significantly lower. The Eurogroup summit in Riga begins today and will be a further confrontation.
Furthermore, the ECB has decided to leave the so-called "haircuts" unchanged, i.e. the cuts applied to the nominal value of the securities made by Greek banks as collateral to obtain ELA funds. According to the SZ newspaper, reported in the Cassa Lombarda Daily Market Report, the Eurogroup is in the meantime considering an extension of the aid program until the autumn in exchange for a partial acceptance of the terms at the G7 summit on 7/8 June.
