Greece debt crisis: ECB ‘to end’ bank emergency lending

The European Central Bank is expected to end emergency lending to Greece’s banks on Sunday, the BBC understands.

BBC, June 28

Well-placed sources told BBC economics editor Robert Peston a decision to end the Emergency Liquidity Assistance (ELA) would be made by the ECB’s governing council later on Sunday.

Greek banks depend on ELA funds daily.

Greek Finance Minister Yanis Varoufakis said his government would consider overnight what measures to take “to minimise the burden on our people”.

Cutting the ECB lifeline could push Greece out of the euro.

Such an ECB cut would mean “Europe has failed”, Mr Varoufakis told the BBC’s World this Weekend.

Via Naked Capitalism: BBC: ECB to Stop Emergency Support of Greek Banks on Monday; Bank Holiday Likely

The Guardian: Greek crisis: Banks shut for a week as capital controls imposed – live updates

Greek banks will not open until July 7 in an attempt to avoid financial panic, after ECB capped the emergency funds keeping them running

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  • Perhaps a slight reprieve:


    28 June 2015 – ELA to Greek banks maintained at its current level

    ECB takes note of decision on Greek referendum and the non-prolongation of the EU adjustment programme
    ECB will work closely with Bank of Greece to maintain financial stability
    Emergency liquidity assistance maintained at Friday’s (26 June 2015) level
    Governing Council stands ready to review decision
    Governing Council closely monitoring situation and potential implications for monetary policy stance

    The Governing Council of the European Central Bank today welcomed the commitment by ministers from euro area Member States to take all necessary measures to further improve the resilience of euro area economies and to stand ready to take decisive steps to strengthen Economic and Monetary Union.

    Following the decision by the Greek authorities to hold a referendum and the non-prolongation of the EU adjustment programme for Greece, the Governing Council declared it will work closely with the Bank of Greece to maintain financial stability.

    Given the current circumstances, the Governing Council decided to maintain the ceiling to the provision of emergency liquidity assistance (ELA) to Greek banks at the level decided on Friday (26 June 2015).

    The Governing Council stands ready to reconsider its decision.

    Mario Draghi, ECB President, said: “We continue to work closely with the Bank of Greece and we strongly endorse the commitment of Member States in pledging to take action to address the fragilities of euro area economies.”

    Yannis Stournaras, Governor of the Bank of Greece, said: “The Bank of Greece, as a member of the Eurosystem, will take all measures necessary to ensure financial stability for Greek citizens in these difficult circumstances.”

    The Governing Council is closely monitoring the situation in financial markets and the potential implications for the monetary policy stance and for the balance of risks to price stability in the euro area. The Governing Council is determined to use all the instruments available within its mandate.

  • Alexis Tsipras: Message: “Our only fear is fear” (Google translated).

    What is needed in the coming days is composure and patience.


    Today, we have the chance to prove to ourselves – and indeed, to the world – that justice can prevail. Once again, we have a historic opportunity to send a message of hope and dignity to Europe and the world.


    The dignity of the Greek people in the face of blackmail and injustice will send a message of hope and pride to all of Europe.

    Naked Capitalism: Tsipras’ Bailout Referendum Sham

    Moon of Alabama: The Greek Tragedy: Curtain Closes On Most Absurd Act

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