Greek banks will remain solvent as long as Greece is on the programme – Draghi

FXStreet (Córdoba) – ECB President Draghi has told Greek Prime Minister Alexis Tsipras that the Greek banks will remain solvent as long as Greece is still on the programme, according to a Greek government official.

Today, the European Central Bank raised the Emergency Liquidity Assistance (ELA) for Greek institutions by €2 billion, being the third increase in six days.

A further €1.6 billion of Greek withdrawals was reported on Monday following €2 billion of outflows on Friday and over the weekend. The Governing Council will hold another conference call on Tuesday to decide whether to allow the Bank of Greece to provide even more emergency loans, FT reports.

Hopes of a deal pick up

Meanwhile, hopes of a deal picked up on Monday after Athens submitted a new set of proposals, which were welcomed by creditors although technical work needs to be done.

According to BBC, new Greek proposals include, a new tax on businesses, a new tax on the wealthy
and some increases in the VAT rate on selected items. But there would be no further reductions in pensions or plublic-sector wages and there would be no increase in VAT on electricity. Additionaly, reports say the Greek proposal envisions the ESM buying ECB bonds in the future.

ECB President Draghi has told Greek Prime Minister Alexis Tsipras that the Greek banks will remain solvent as long as Greece is still on the programme, according to a Greek government official.

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