ECB tightens conditions for Greek banks

The European Central Bank has decided against raising the cap on maximum loans, but said it will maintain the same level of support for Greek banks which are running out of money.

Pentioners stand in queue to withdraw the limited amount of 120 euros from their pension accounts Source: AAP

 

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The European Central Bank kept Emergency Liquidity Assistance (ELA) steady for Greek banks but adjusted the haircut on the collateral those lenders offer as security, the ECB said.

"The Governing Council of the European Central Bank decided today to maintain the provision of ELA to Greek banks at the level decided on 26 June 2015 after discussing a proposal from the Bank of Greece," the ECB said in a statement.

It said that the Governing Council of decision makers was "determined to use all the instruments available within its mandate".

Greece's Tsipras tells ECB's Draghi wants capital controls gone

Greek Prime Minister Alexis Tsipras told European Central Bank President Mario Draghi during a phone call on Monday that there was an immediate need to lift capital controls in Greece, a government official said.

Tsipras also discussed the liquidity situation of Greek banks with the ECB chief, said the official, speaking on condition of anonymity.

Greek banks have been closed and the level of withdrawals from cash machines has been limited for more than a week, after the government imposed capital controls in an effort to prevent a collapse of the banking system.