European Central Bank has carried out a reduction of the ELA to Greek banks

The European Central Bank has carried out a reduction of the Emergency Liquidity Assistance (ELA) to Greek banks at the request of the Bank of Greece.

According to the statement issued by the Bank of Greece, the ECB “did not object to the request of the Bank of Greece for an ELA-ceiling for Greek banks of €88.9 billion”.

The 200-million-euro reduction of the ELA ceiling was requested due to “an improvement of the liquidity situation of Greek banks, amid a reduction of uncertainty and the stabilization of private sector deposits flows”.

On its behalf, the ECB announced that national central banks will now have the option of publicizing the provision of ELA to the banks in their country, should it be deemed necessary.