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ECB raises emerging funding for Greek banks after eurozone summit: source

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The European Central Bank raised the ceiling on emergency liquidity Greek banks can draw from the country's central bank for a second time in two days on Tuesday, a banking source told Reuters, declining to say by how much.

[ATHENS] The European Central Bank raised the ceiling on emergency liquidity Greek banks can draw from the country's central bank for a second time in two days on Tuesday, a banking source told Reuters, declining to say by how much. "The ECB's governing council will convene again via teleconference whenever this is needed," the source said, speaking on condition of anonymity.

The ECB's governing council held a teleconference on Tuesday after euro zone leaders held an emergency meeting in Brussels in an effort to clinch a cash-for-reforms deal with Greece and stave off a default.

After hiking emergency credit for Greek lenders to about 86 billion euros last week, the ECB agreed to a further 2 billion euros of such Emergency Liquidity Assistance (ELA) on Monday, people with knowledge of the matter told Reuters.

The ECB had been approving emergency funding on a weekly basis but is now meeting almost daily as bank withdrawals continue and negotiations reach a climax.

REUTERS