Tag: greece

What is the ECB’s Emergency Liquidity Assistance or ELA Program

What is the ECB’s Emergency Liquidity Assistance or ELA Program

Financial Markets Explained
Ever since the recent Greece crisis hit the news headlines, a constant abbreviation "ELA" has been mentioned in the same breathe. For most investors and traders alike, the ELA might initially come across as yet another 'complex financial jargon' (think: EFSF, ESM, etc) put together by the technocrats in the EU Commission and the ECB. The ELA has grown to become an increasingly important tool in the Greece crisis. More importantly, it (the ELA) has allowed Greek banks to remain solvent while an agreement is chalked out by Greece and its lenders. So what is the Emergency Liquidity Assistance or ELA for short? The ELA is one of the many programs run by the European Central Bank and is described as financial support offered by the ECB in 'exceptional circumstances or on a case-to-case basis'...