Bloomberg: ECB Cuts Greek Emergency Funding as Draghi Rules Out Bail-In

The European Central Bank reduced the amount of emergency funding available to Greek lenders, a person familiar with the matter said, as capital controls and an agreement between the country’s government and its creditors eased deposit outflows.

   The cap on Emergency Liquidity Assistance was cut by 600 million euros to 89.1 billion euros ($100 billion), and the ceiling will stay in place until the next Governing Council meeting scheduled for Sept. 16, the person said, asking not to be named as ELA decisions aren’t public.

   A Bank of Greece spokesman wasn’t immediately available for comment, while ECB President Mario Draghi said on Thursday that rules will be eased as of now, allowing central banks to convey ELA figures. The ELA reduction was communicated thanks to journalists’ “investigative capacities,” he told reporters in Frankfurt.

   The decline in ELA, which follows a cut of 700 million euros last month, reflects an easing of Greece’s financial crisis following months of dispute that almost drove the country out of the euro. Former Prime Minister Alexis Tsipras was forced to impose capital controls after breaking up negotiations with creditors and calling a referendum on the terms demanded, before finally agreeing to a deal.

Πηγή: bloomberg.com