The chief of the European Central Bank Mario Draghi announced that emergency liquidity will be provided to Greek banks for as long as they are solvent have collateral, in a news conference.
Mr. Draghi explained that “ELA will continue to be given until Greek banks will be solvent and have adequate collateral” and added that “given the fragility of the current situation, the continued deposit outflows, the ongoing policy dialogue, recently the yields on sovereign bonds were the highest since 2012 PSI time”. He then added that “the higher are the yields, the bigger is the volatility, the more collateral gets destroyed”.
When asked whether there was a possibility of a partial payout of the next loan installment that Greece is due, Mr. Draghi opposed such a thought, noting that the agreement with Greek authorities was a for full program within four months.
