Given the hard situation that Greek banks are facing, there are strong chances that the ECB will keep or even increase the ELA – currently it amounts to EUR 60 billion after being increased recently.
Such move from the central bank would be well acclaimed by the markets, analysts at Link Securities commented on Monday, since it would mean an ECB endorsement of the ongoing negotiations.
If the Greek authorities had not taken the Eurogroup’s offer ELA would had probably been shut down, increasing the need to set up capital controls to avoid capital flight out of Greece, and Greek banks would likely have to introduce limits on cash withdrawals.
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