Summary ECB's policy-setting governing council was likely to discuss issue in a teleconference on Thursday
FRANKFURT (AFP) - The European Central Bank will again examine whether to extend emergency funding to Greek banks at a meeting this week, a source familiar with the ECB s thinking on the matter told AFP on Tuesday.
The ECB s policy-setting governing council was likely to discuss the issue in a teleconference on Thursday, the source said.
"They will discuss it to review and possibly extend the ELA (emergency liquidity assistance). It should take place on Thursday," the source said.
A spokesman for the ECB declined to comment.
Greek banks are dependent on the ECB for financing, but the eurozone s central bank no longer accepts Greek sovereign bonds as collateral for loans.
It had done so previously under a special waiver mechanism, but rescinded that waiver until Athens new anti-austerity government under Prime Minister Alexis Tsipras can reach a new debt deal with its creditors.
Without the waiver, Greek banks now rely solely on ELA, which is more expensive than normal central bank refinancing operations.
At a meeting in Nicosia last week, the governing council decided to raise the ELA ceiling by 500 million euros to 68.8 billion euros ($73.3 billion).
Given the changing situation in Greece, the ECB has now decided to closely monitor the country s liquidity situation, and will probably hold a meeting each week on the ELA facility, the source said.
