The ECB is set to take account of
treaty article 5's principle of proportionality urging a prudent
approach in weighing Greek bank liquidity after Sunday's
referendum, sources said Friday. In theory, in a worst-case
scenario, the ECB could shut off the 90-billion-euro Emergency
Liquidity Assistance (ELA) but that would trigger Greek bank
failure. It is much more likely that the central bank would cut
ELA by raising the discount on the value of Greek bonds used as
guarantees by the banks, the sources said.
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