The European Central Bank's support to Greek banks, the so-called Emergency Liquidity Assistance (ELA), is likely to continue, the Lithuanian central bank governor said on Tuesday.
Vitas Vasiliauskas
© DELFI / Mindaugas Ažušilis

"The environment related to Greece causes an outflow of deposits from the Greek banking system. But Greek banks today have the adequate collateral and I would guess that the provision of liquidity loans as day-to-day operations will continue," Vitas Vasiliauskas said at a news conference.

According to the chairman of the Bank of Lithuania's board, the ECB is watching the situation in Greece on a daily basis and there will be more than one discussion on liquidity loans.

"Everybody is interested in having a positive result, because I think that the situation as it is now is not acceptable to anyone and Greece in the first place," he said.

Liquidity loans can be provided to banks in eurozone member countries against collateral if these banks are solvent.

The ECB on Monday increased emergency liquidity funds for Greek banks for the third time since last Wednesday.

BNS
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