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Friday, January 16, 2015

Greece Running Out of Cash Again

It seems that Greece, or rather the Greek banking system, is running out of cash again (due to increased government borrowing and a run on the banks).

As per ekathimerini.com two Greek systemic banks have submitted requests to the Bank of Greece for cash via the emergency liquidity assistance (ELA) system. It is thought that requests from the remaining Greek banks will follow in the next few days.

As at the time of writing, the amount asked for is Euro5BN.

The ECB will consider this next week. Whilst the ECB ponders what to do, the bank run continues. Let us trust that there will be some banks left there for the ECB to rescue once (if) it makes its mind up.

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