19th February 2015
The European Central Bank (ECB) has agreed to up the emergency funding available to Greek banks to €68.3bn according to BBC News.
The €3.3bn increase in the so-called Emergency Liquidity Assistance (ELA) is critical for Greece’s banks.
On the back of the nation’s economic woes, depositors have been withdrawing their cash, leaving Greek banks with little to lend.
The Greek central bank is said to have requested an additional €10bn of funding. Already the ECB has raised the amount available to Greek banks by €5bn to some €65bn.
At present Greece is looking to renegotiate its debt deal with eurozone policyakers, as its government believes the current conditions of the bailout are crippling the economy.
It is reportedly asking the eurozone for a six-month extension of its loan. Notably it would not be a renewal of the current bailout agreement, which includes strict austerity measures.
Earlier this week, the Greek government turned down an offer which would have extended its €240bn bailout loan.
The clock is ticking however as Greece could run out of money if a deal is not reached with policymakers before the end of the month.
Greek finance minister Yanis Varoufakis told Germany’s ZDF: “We should extend the credit programme by a few months to have enough stability so that we can negotiate a new agreement between Greece and Europe.”