The ECB maintains emergency loans to Greek banks – Ambito.com

     Business
    
    
    Monday July 6, 2015
    
         
    

After analyzing victory of “no”

The European Central Bank (ECB) said on Monday, after analyzing the consequences of the victory of “no” in the referendum on Sunday in Greece, which remain at its current level emergency loans to holding the Greek banks.

“The Governing Council (ECB) is closely monitoring the situation in the financial markets and the potential implications for monetary policy and the balance of risks to price stability in the eurozone” , wrote the ECB in a statement issued after a meeting in Frankfurt.

The Council of the ECB decided after evaluating the results of the vote in Greece, where people showed their opposition to the policies of saving the country required its creditors.

The current level of credit, amounting to almost 90,000 million euros, was agreed in late June.

Most analysts the ECB had maintained the credit while still open political dialogue, which will occur on Tuesday in Brussels with a new extraordinary summit of heads of state and government of the 19 member countries of the eurozone.

called credits ELA (Emergency Liquidity Assistance) are for months the only source of money to Greek banks, which most economists believe that banks would be doomed to failure if the ECB closed the tap of credit.

Within the ECB itself is increasing resistance to ALS for Greece. One of the biggest critics is the president of the German Bundesbank, Jens Weidmann, who insists that the measure was originally designed to assist solvent banks in an emergency and temporary basis.

After the failure of the Negotiations between Greece and international creditors, the ECB decided on June 28 to freeze a maximum of 90,000 million euros the volume of ALS. Athens was forced to close for more than a week their banks and impose capital controls and cash withdrawals from ATMs.

The ECB decision on ELA loans was one of the most anticipated of the subsequent day Sunday’s referendum, in which more than 61 percent of Greeks voted “no” to reform plans and savings from international creditors, opening an uncertain outlook on the country’s future in the eurozone.