Several people are interpreting "stays the same" as good news for Greece and contrary to the article. I interpret it as the opposite: it will not expand further to meet the demand, thus Greek banks will run out of money. I didn't have the impression anyone expected the full amount to be recalled.
The article was incorrect by stating ELA would be "turned off", as it will merely be frozen, or at least the ECB is saying so.
However if the ECB follows through on this, the end result may be the same and it's only a matter of time before the entire ELA bailout is unwound like in Cyprus.
The article seems a little confusing/confused but not strictly incorrect. There is no statement that the full amount would be recalled. The value of ELA has effectively become the extensions - the newly-lent money is being withdrawn daily. "Ending" this and refusing increase the limit could be considered the same.
Comments
Several people are interpreting "stays the same" as good news for Greece and contrary to the article. I interpret it as the opposite: it will not expand further to meet the demand, thus Greek banks will run out of money. I didn't have the impression anyone expected the full amount to be recalled.
The article was incorrect by stating ELA would be "turned off", as it will merely be frozen, or at least the ECB is saying so.
However if the ECB follows through on this, the end result may be the same and it's only a matter of time before the entire ELA bailout is unwound like in Cyprus.
The article seems a little confusing/confused but not strictly incorrect. There is no statement that the full amount would be recalled. The value of ELA has effectively become the extensions - the newly-lent money is being withdrawn daily. "Ending" this and refusing increase the limit could be considered the same.