Greek banks post haircut collateral value at €93 billion

Greece’s banks hold enough eligible collateral to access an additional €14 billion in Emergency Liquidity Assistance funds, two Eurosystem sources have told MNI, suggesting that just weeks of increasing support remains for the country’s beleaguered financial system.

The total value of Greek banks’ eligible collateral after haircuts last week was about €93 billion, two Eurosystem sources confirmed, highlighting the limited scope for the ECB to further step up ELA support as political negations with the country’s international creditors drag on.

A return to the haircut schedule used late last year would shave €6 billion off post-haircut collateral, according to the sources, reducing it to about €87 billion and in turn limiting the scope for further ELA increases to just €8 billion.

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