ECB Data Show Possible Jump in Borrowing by Cypriot, Greek Banks

A 26 percent jump in a line item on the European Central Bank’s balance sheet is pointing to a rise in emergency borrowing by banks in Cyprus and Greece.

“Other claims on euro-area credit institutions” rose to almost 89 billion euros ($114 billion) for the week ended March 29, up from a 12-month low of 70 billion euros two weeks earlier. The balance-sheet item, published yesterday on the ECB’s website, includes Emergency Liquidity Assistance, or ELA, provided by national central banks when a country’s lenders don’t have enough collateral to borrow directly from the ECB.