ECB to hold new emergency meeting Monday on funding for Greek banks

The ECB's governing council will hold a special meeting on Monday to examine whether to raise the level of emergency funding for Greek banks, sources told AFP, after Greece's banking system came under intense pressure with clients withdrawing billions in savings. 

PHOTO: AFP

JUN 22, 20157:08 AM

[FRANKFURT] The ECB's governing council will hold a special meeting on Monday to examine whether to raise the level of emergency funding for Greek banks, sources told AFP, after Greece's banking system came under intense pressure with clients withdrawing billions in savings.

The meeting is being held at the request of the Bank of Greece, said a source who declined to give further details.

The ECB already raised the level of funding for Greek banks on Friday for the second time in a week, although the amount is not known.

European media estimate that the ECB has raised the cap by between 1.8 billion (S$2.73 billion) and 3 billion euros, bringing the total limit of emergency liquidity to between 86 and 88 billion euros.

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"There are cash withdrawals to deal with... the situation is difficult, it's obviously very tensed," a European source said.

The withdrawals have accelerated in recent days, with Greek media estimating that between four billion and six billion euros were taken out over the week.

According to the Bank of Greece, 30 billion euros had already been withdrawn by depositors between December and April.

AFP