BNP Paribas skriver:
Greece: Increased liqudity pressure The ECB increased its emergency liqudity assistance (ELA) limit to Greek banks by EUR 0.2bn, to EUR 80.2bn. This was below the Bank of Greece’s request for a EUR 1.1bn increase, according to press reports. As Greece tries to reach a deal with its creditors by 5 June, when a EUR 0.3bn IMF loan redemption comes due, some press reports suggested that the ECB could toughen the requirements on Greek bank collateral for its liquidity operations.
At the same time, however, it could expand the pool of assets it deems eligible as collateral, neutralising the impact on the maximum amount of emergency liquidity assistance (ELA) available to Greece. Neither has occurred, in line with our expectations. Reportedly, some ECB Governing Council members thought the previous EUR 80bn ELA limit was enough to cover Greek banks’ liquidity needs, as deposit outflows stabilized over the past week. With the negotiations between Greece and its creditors ongoing, it looks like the ECB avoided taking too hard a stance on Greece by not tightening the ELA conditions. But, a much lower-than-expected increase suggests a toughening stance, increasing pressure on Greece to reach a deal with its creditors.
