ECB cuts ELA to €88.9 billion on improved conditions

FXStreet (Mumbai) - The European Central Bank (ECB) reduced the ceiling for emergency liquidity assistance (ELA) Greek lenders can receive from the central bank of Greece to €88.9 billion from an earlier €89.1 billion.

The Bank of Greece noted, “This reduction of 0.2 billion euros in the ceiling, requested by the Bank of Greece, reflects an improvement of the liquidity situation of Greek banks, amid a reduction of uncertainty and the stabilization of private sector deposits flows."

ELA funding for Greek banks shrank by €1.35 billion to €83.95 billion at the end of August, the Bank of Greece said.