The European Central Bank is considering the restriction of the Emergency Liquidity Assistance for Greece, currently about 74 billion euros, according to a Bloomberg report.
The report explains that the ECB is considering further limiting the liquidity offered to Greece, as there are reactions amongst board members on the possibility of further assistance provided towards Greek banks.
Should Greece be unable to convince its partners in the upcoming Eurogroup in Latvia on the reforms that it plans to take, then the ECB may “increase the haircuts banks take on the collateral they post when borrowing from the Bank of Greece”.
