ECB Raises Funding for Greece By €900 Million, Greek Banks Expected to Reopen Next Week

The European Central Bank has decided to raise financing through the Emergency Liquidity Assistance (ELA) mechanism for Greece by 900 million euros, ECB president Mario Draghi said during a press conference in Frankfurt on Thursday.

According to Mr. Draghi, the Greek parliament’s vote of approval for the prior actions demanded by Greece’s creditors in exchange for a multibillion euro new bailout, was one of the reasons the conditions were restored for a raise in the country’s emergency liquidity limits.

The issue of ELA will be reviewed again next week, Mr. Draghi said, adding that the ECB, in cooperation with the Bank of Greece, will closely monitor the developments in the Greek economy and the banking system.

The raise in Greece’s emergency liquidity limits paves the way for Greece’s banks to reopen after more than two weeks of closure and capital controls.

According to the Athens News Agency, banking sources believe the Greek banks will open their doors on Monday, July 20.

Although the 60-euro limit on daily cash withdrawals will remain, it is expected that account holders will be able to “carry over” their withdrawal allowance for at least one or two days.