ECB said to raise Greek Bank Emergency Cash by €200 Million

The European Central Bank (ECB) consented to a 200 million-euro ($222 million) increase in the cap on Emergency Liquidity Assistance for Greek banks, according to people familiar with the discussion.

Meeting in Frankfurt on Wednesday, the ECB Governing Council approved a new limit of 80.2 billion euros, marking the smallest increase since policy makers tightened the reins on Greek lenders in February. No decision was taken on the level of discounts applied to collateral that lenders pledge for the Bank of Greece emergency loans, the people said, asking not to be named as the matter isn’t public.

Spokesmen for the ECB and the Bank of Greece declined to comment.

Before the meeting, some members of the ECB Governing Council took the view that the previous 80 billion-euro buffer was sufficient to meet Greek banks’ needs, as deposit outflows stabilized in the past week.

Source: Bloomberg