The European Central Bank on Sunday announced its decision to maintain the ceiling on provision of funding to Greek banks via Emergency Liquidity Assistance (ELA) at the level agreed on Friday – 89 billion euros – without raising this further.
According to a statement released by the ECB, the ECB Governing Council said it would “work closely with the Bank of Greece to maintain financial stability” and “stands ready to reconsider its decision.”
“We continue to work closely with the Bank of Greece and we strongly endorse the commitment of Member States in pledging to take action to address the fragilities of euro area economies,” said ECB President Mario Draghi.
Bank of Greece Governor Yannis Stournaras, on his part, noted:
“The Bank of Greece, as a member of the Eurosystem, will take all measures necessary to ensure financial stability for Greek citizens in these difficult circumstances.”
Following the ECB’s decision, the focus is now on the meeting of Systemic Stability Council due to begin at the finance ministry shortly.
The full ECB statement is given below:
“The Governing Council of the European Central Bank today welcomed the commitment by ministers from euro area Member States to take all necessary measures to further improve the resilience of euro area economies and to stand ready to take decisive steps to strengthen Economic and Monetary Union.
Following the decision by the Greek authorities to hold a referendum and the non-prolongation of the EU adjustment programme for Greece, the Governing Council declared it will work closely with the Bank of Greece to maintain financial stability.
Given the current circumstances, the Governing Council decided to maintain the ceiling to the provision of emergency liquidity assistance (ELA) to Greek banks at the level decided on Friday (26 June 2015).
The Governing Council stands ready to reconsider its decision.
The ECB Governing Council is closely monitoring the situation in financial markets and the potential implications for the monetary policy stance and for the balance of risks to price stability in the euro area. The Governing Council is determined to use all the instruments available within its mandate.”