ATHENS Dec 8 The European Central Bank lowered
the cap on emergency liquidity assistance (ELA) Greek banks draw
from the domestic central bank by 200 million euros to 50.7
billion euros ($54.5 billion), the Bank of Greece said on
The move reflected improving liquidity conditions and the
stabilisation of private sector deposit flows, it said. The ELA
ceiling is valid up to January 11.
Greek banks have relied on emergency liquidity assistance
(ELA) since February 2015 after being cut off from the ECB's
funding window. Emergency funding is more costly than borrowing
directly from the ECB.
In June the ECB reinstated Greek banks' access to its cheap
funding operations, allowing lenders to reduce their dependence
on the emergency liquidity lifeline.
($1 = 0.9302 euros)
(Reporting by George Georgiopoulos)