Policy reactions to the Eurozone crisis

Emergency central bank funding to Greek lenders fell by 2.8 percent, or 1.3 billion euros, in November compared to the previous month, Bank of Greece data showed on Tuesday.

Benoit Coeure, the European Central Bank’s (ECB) executive board member, said that Greece was not in need of a fourth bailout program, speaking to Greek television station Skai TV. Coeure left the possibility of reducing the 3.5% GDP surplus target open after the completion of the current memorandum.

Greek banks stand to miss out on future earnings of 1.2 billion euros if a plan to replace European Financial Stability Facility (EFSF) bonds with other fixed-rate securities - one of the measures under examination for the easing of the Greek national debt - is implemented.

The European Central Bank lowered the cap on emergency liquidity assistance (ELA) Greek banks draw from the domestic central bank by 200 million euros to 50.9 billion euros ($54.54 billion), the Bank of Greece said on Thursday.

The Greek delegation to the Eurogroup in Luxembourg was taken somewhat aback Monday after eurozone officials approved the disbursement of 1.1 billion euros instead of the full amount of 2.8 billion in loans Athens was banking on. 

The European Central Bank lowered the cap on emergency liquidity assistance (ELA) Greek banks draw from the domestic central bank by 100 million euros to 51.8 billion euros ($58.08 billion), the Bank of Greece said on Wednesday.

The European Central Bank lowered the cap on emergency liquidity assistance (ELA) Greek banks draw from the domestic central bank by 0.9 billion euros to 51.9 billion euros, the Bank of Greece said on Thursday.

The move reflected improving liquidity conditions in Greek banks and the stabilization of private sector deposit flows, it said.

The European Central Bank lowered the cap on emergency liquidity assistance (ELA) Greek banks draw from the domestic central bank by 4.4 billion euros to 52.8 billion euros, the Bank of Greece said on Thursday.

The move reflected improving liquidity conditions in Greek banks and the stabilization of private sector deposit flows, it said. The ELA ceiling is valid up to September 21.

Greek bonds (government and corporate alike) remain unattractive internationally despite the particularly favorable conditions in global markets, as investors are still reluctant to take on any Greek risk. Sovereign bond yields climbed again on Tuesday due to uncertainty about Greece fulfilling its prior actions, while corporate bond yields remain at very high levels.

European Central Bank is expected to re-introduce a waiver in accepting Greek bonds as collateral for refinancing the Greek banks during its next meeting to take place in June 2, in Vienna.