The board of the European Central Bank (ECB) is expected to re-evaluate the extent of emergency funding that will be provided to Greek banks via the Emergency Liquidity Assistance (ELA) mechanism.
Last week the ECB took the decision to increase the ELA funding to just over 71 billion euros and a new increase is expected today, due to the deposit outflow from general government bodies, which were invested in repos.
Since December 2014, about 28 billion euros have been taken out of Greek banks, with deposits presently estimated to be about 137 billion euros.
On Tuesday the President of the Supervisory Council of the ECB Danièle Nouy reported that the solvency of the Greek banking sector is far better condition than in previous years, suggesting that an ELA increase is more than likely.
