Greek debt: ECB ‘to maintain funding limit’

The European Central Bank says it will maintain its emergency funding of Greek banks at the level agreed on Friday.

The ECB said that it stood ready to review the decision on its Emergency Liquidity Assistance (ELA) and would work closely with the Bank of Greece.

BBC economics editor Robert Peston says the ECB is not providing any additional aid to Greece, which will lead to huge pressure for capital controls.

Greek banks depend on ELA, and cutting it could push Greece out of the euro.

An ECB spokesman told the BBC: “Greece still has access to the ELA.”

In the ECB statement, Bank of Greece Governor Yannis Stournaras said: “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.”

BBC