Market liquidity

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 46.3 billion euros, the Bank of Greece said on Thursday.

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

The ELA ceiling is valid up to February 15.

Turkey's Central Bank bank governor signaled on Jan. 31 that its unorthodox steps to manage sharp falls in the Turkish Lira were working and would continue until the inflation outlook shows a significant improvement.

Greece's entry into the European Central Bank's quantitative easing (QE) program keeps getting put off, just as criticism is mounting over the effectiveness of the bond-buying program and the potential legal hazards for Frankfurt - concerns that are doing nothing to make it easier for the country to get on board.

The European Central Bank lowered the cap on emergency liquidity assistance (ELA) Greek banks draw from the domestic central bank by 4.2 billion euros to 46.5 billion euros, the Bank of Greece said on Thursday.

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

The ELA ceiling is valid up to February 1.

The Central Bank has responded to the Turkish Lira's historic plunge by cutting forex required reserves, in a move adding $1.5 billion in liquidity to the financial system, vowing additional steps if necessary. 

The statement helped stem some of the lira's losses, although analysts said more must follow to back the struggling currency.

Political uncertainty in Greece is the greatest concern of the country's major enterprises, while matters of funding and the constant changes in legislation are viewed as less worrying, according to an Alco survey carried out in cooperation with Fidel & Fortis management consultants.

After a long period of exclusion, Greek banks have resumed transactions in the interbank market, a sure sign that conditions are returning to normal and expectations are growing.

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.

Bank of Cyprus, the East Mediterranean island's largest lender, said Tuesday it would apply for a listing on the London Stock Exchange as part of its restructuring drive.

"We are delighted to be applying for a listing on the London Stock Exchange, which marks another significant step in the bank's transformation," said BoC chairman Josef Ackermann in a statement.

The Central Bank has lowered its reserve option coefficient, a move that will provide approximately $620 million in liquidity to Turkey's financial system.
According to a statement from the Bank issued on Oct. 31, the coefficients for the second, third and fourth tranches of the foreign exchange facility of the Reserve Option Mechanism have been decreased by 0.2 points.