ECB keeps emergency loans to Greek banks

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(VOVworld) – The Governing Council of the European Central Bank decided Monday to maintain the provision of emergency liquidity assistance (ELA) to Greek banks at the set level of 89 billion euros.

(VOVworld) – The Governing Council of the European Central Bank decided Monday to maintain the provision of emergency liquidity assistance (ELA) to Greek banks at the set level of 89 billion euros.

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People wait in line to withdraw 60 euros each from an ATM in Athens, after Greece closed its banks on June 29, 2015. (Photo: Milos Bicanski/Getty Images)

Under the plan, the ECB will not raise the level of emergency credit available to Greece's cash-strapped banks though the Greek government used to hope to get additional 2 billion euro in the ELA rate.

The ECB’s decision increases pressure on Athens making it to tighten measures for capital control which has been applied since late last month such as allowing withdrawal of 60 euros per person per day at ATMs.

The international community has begun to respond to the agreement to save Greece not to leave the Eurozone.

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Speaker of the German Bundestag, Norbert Lammert

A statement by speaker of the German Bundestag, Norbert Lammert said that German Parliament will vote Friday on formally opening negotiations with Greece on the third financial aid. But the Greek government will first have to put a set of measures through its own parliament by Wednesday, as demanded by Germany's eurozone partners.

Spanish Prime Minister Mariano Rajoy said a deal with Greece can help revitalize its economy and consolidate the entire Eurozone.

NATO’s General Secretary Jens Stoltenberg welcomed the agreement between Greece and Europe adding that Greece’s stability is necessary for the bloc’s members’ security.

 

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