ECB faces resistance from Germany on extra ELA to Greek banks

FXStreet (Bali) - According to Reuters, citing unnamed sources, the ECB is facing resistance from Germany to allowing any extra emergency lending for Greek banks, which may put further pressure on Greece to come to terms and accept an extension of its bailout program.

Reuters notes: "After talks between Greece and euro zone creditors broke down acrimoniously on Monday, the ECB's policymaking governing council will review on Wednesday how far the country may support its weak banks, which face rising deposit outflows."

"While the ECB is unlikely to lower the ceiling on emergency lending assistance (ELA) by the Greek central bank, a refusal to increase it would nonetheless be bad news for Greek banks, which are close to using up the full 65 billion euros granted so far" Reuters adds.