ECB set to take 'prudent' view on Greece

(ANSA) - Rome, July 3 - 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.