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The ECB isn't giving Greece any new cash just yet

Jul 13, 2015, 17:43 IST

It looks like the European Central Bank will not be giving Greece any fresh cash. Yet.

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Headlines crossing Bloomberg on Monday morning indicate that the ECB has left the ceiling on its Emergency Liquidity Assistance, or ELA, for Greece unchanged.

And so despite a deal between Greece and its creditors overnight, there's no change in the situation for Greek banks.

And no new cash for Grek banks has been the ECB's stance since the crisis began 2 weeks ago after Greek prime minister Alexis Tsipras called a referendum to vote on a bailout package offered to Greece by its creditors.

Since then, Greece has reached a (new, worse) deal with its creditors that must now be approved in parliament by Wednesday.

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But with optimism in Europe that a deal can finally be reached, the countdown is on to when Greek banks can finally re-open. Re-opening the banks, however, is likely to take an infusion of some new capital, and the ECB raising the ELA is seen as a catalyst that could make this possible.

According to Bloomberg, Greece will extend the bank holiday and capital controls, which have limited ATM withdrawals to 60 euros per day, in an announcement on Monday, a report that was followed by news the ECB will not act just yet.

And so while it looks like there's been a deal in Greece, the situation in Athens appears status quo for now.

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