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GreekReporter.com Greek News Economy European Central Bank Decreases ELA Ceiling for Greece

European Central Bank Decreases ELA Ceiling for Greece

ECBThe European Central Bank (ECB) has decided to further lower the ceiling for Emergency Liquidity Assistance to Greece, the Bank of Greece (BoG) revealed. The new ceiling now stands at 86 billion euros.
“The reduction of 0.9 billion euros in the ceiling reflects an improvement of the liquidity situation of Greek banks, amid a reduction of uncertainty and the stabilization of private sector deposit flows,” the Bank of Greece notes.
The ceiling has been steadily reduced since the beginning of September when it stood at 89.1 billion euros. Reduced ELA ceilings come in the aftermath of the three year 86 billion euro bailout deal that Greece and creditors agreed to in August, and in anticipation of a Greek bank recapitalization.
An ECB comprehensive assessment that was published on October 31st found that Greek banks could need up to 14.4 billion euros to cover their capital shortfalls. Each one of Greece’s four systemic banks must cover at least the capital shortfalls of their respective baseline scenarios, which amount to a total of 4.4 billion euros, if they are to avoid nationalization.

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