FRANKFURT (Reuters) - It is essential that Greek banks on emergency liquidity assistance (ELA) from their national central bank remain solvent, European Central Bank Executive Board member Peter Praet said on Thursday.
The European Central Bank has authorised Greece’s national central bank to provide the country’s lenders with some 60 billion euros (44 billion pounds) in ELA, people familiar with the matter have told Reuters.
Such ELA provision is critical to Greece’s banks after the ECB cancelled its acceptance of Greek bonds in return for funding last week.
“There are very clear rules in terms of emergency liquidity assistance - it’s always for solvent banks - and so we are going apply the rules as they are,” Praet told the Financial Times.
“It is key that the banks benefiting from emergency liquidity assistance remain solvent.”
Writing by Paul Carrel; editing by John Stonestreet