FRANKFURT: European Central Bank policy setters are considering keeping Emergency Liquidity Assistance open to Greek banks on Monday but imposing a higher valuation discount on the security they offer in return for the funding, people familiar with the matter said.
If the haircut on the assets Greek banks give for Emergency Liquidity Assistance is increased, it would, however, curb their use of such finance.
"There is a possibility of an extension," said one of the people with direct knowledge of the ongoing telephone discussion among the ECB's decision-making Governing Council, adding that a bigger 'haircut' is being discussed.
Because this valuation calculation is not publicised, it would not be clear how much of the ELA banks could use. The limit for such funding is now at roughly 89 billion euros ($99 billion), sources have told Reuters.
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