ECB Said to Raise Cap on Emergency Liquidity for Greek Banks

The European Central Bank increased the cap on emergency cash available to Greek lenders as the nation continues to struggle with a financial crisis, people familiar with the decision said.

Policy makers meeting in Frankfurt on Wednesday raised the limit on Emergency Liquidity Assistance by 2 billion euros ($2.3 billion) to 78.9 billion euros, the people said, asking not to be identified as the meeting is private. ELA is offered by the Greek central bank against lower quality collateral than the ECB typically accepts.

Officials were also scheduled to debate tighter rules for the liquidity, amid concern about Greece’s solvency 100 days after Prime Minister Alexis Tsipras came to power. Options developed by ECB staff include increasing the discounts on the collateral the banks pledge.

An ECB spokesman declined to comment on the Governing Council meeting.

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