Market liquidity

The European Central Bank has lowered the ceiling on emergency liquidity assistance (ELA) Greek banks draw from the domestic central bank by 1.0 billion euros to 24.8 billion euros ($29.33 billion), the Bank of Greece said. 

The move reflected improved liquidity conditions, taking into account private sector deposit flows and banks' access to financial markets, it said.

Turkey’s Central Bank on Dec. 14 raised its late liquidity window rate by 0.50 basis points to 12.75 percent, keeping other rates on hold.

The Greek state has turned into a strategic defaulter of sorts, further threatening the already limited liquidity of Greek enterprises and therefore their sustainability, especially those whose main client is the state.

The Turkish banking sector will remain resilient against global risks since it has a strong capital base, stable asset quality and adequate level of liquid assets, the Central Bank said on Nov. 30 in its latest financial stability report.

The European Central Bank lowered the cap on emergency liquidity assistance (ELA) Greek banks draw from the domestic central bank by 1.1 billion euros to 25.8 billion euros (23 billion pounds), the Bank of Greece said on Thursday.

The process of swapping 20 bonds stemming from the Greek debt restructuring of 2012, or private sector involvement (PSI), began on Wednesday with the issue of new securities.

Greece is taking the necessary steps to facilitate liquidity for its future market forays, Finance Minister Euclid Tsakalotos said on Wednesday.

"We are doing the necessary spade work to ensure appropriate liquidity conditions for future exits to the market," Tsakalotos told Reuters, asked to comment on Greece's debt swap plans announced earlier on Wednesday.

Greece's borrowing costs dipped on Wednesday after the country announced a debt swap plan that analysts said would be significant for the country's bond market.

Greece on Wednesday invited private holders of about 30 billion euros in Greek debt to swap 20 small bonds for five new ones of longer maturity to boost its market liquidity before it emerges from bailouts in August 2018.

The European Central Bank lowered the cap on emergency liquidity assistance (ELA) Greek banks draw from the domestic central bank by 1.7 billion euros to 26.9 billion euros ($31.20 billion), the Bank of Greece said on Thursday.

The Turkish central bank said on Nov. 6 some 5.3 billion lira ($1.37 billion) of lira liquidity will be withdrawn from the market and some $1.4 billion of dollar liquidity provided to banks under a change in reserve requirements.