FXStreet (Mumbai) – While the European Central Bank (ECB) extended its emergency liquidity assistance (ELA) by €900 million in the past two weeks, it kept the cap at around €91 billion on Wednesday without any further increase as the Bank of Greece – contrary to expectations – did not ask for any extra funding.
Authorities in Athens had limited cash withdrawals for Greek citizens to €420 per week, thus preventing crippling outflows from its banks. A new €86 billion bailout program with Greece’s international creditors is expected to boost confidence in the ailing banking sector.
However, it is widely expected that capital controls will remain in place until a final deal, scheduled for the second half of August, is reached. €25 billion from the package is earmarked for recapitalization of the Greek lenders.
(Market News Provided by FXstreet)