The European Central Bank’s governing council has adjusted so-called ‘haircuts’ on collateral accepted by the Bank of Greece for emergency liquidity assistance, the central bank said in a statement.
Moreover, emergency liquidity assistance was left unchanged at the level decided on June 26, meaning a continuing and grave cash-crunch continues for the crisis-battered Greek banking system.
In a statement, the ECB stated:
“The financial situation of the Hellenic Republic (Greece) has an impact on Greek banks since the collateral they use in ELA relies to a significant extent on government-linked assets.”