by James Corbett, The International Forecaster:
As yet another round of Greek/Troika negotiations end in deadlock, all eyes turn to today’s meeting of the European Central Bank’s governing council. The council will be meeting in Frankfurt today ahead of its next formal meeting on March 5th, the week after the termination of the current Greek bailout.
One option up for discussion at today’s meeting will be whether or not to raise the Bank of Greece’s emergency liquidity allowance to Greek banks. Currently, the ELA is capped at 65 billion euros, but last week’s numbers indicate that the Greek banking sector is already brushing up against that cap, with total ELA usage in the neighborhood of 57.5 billion euros. Analysts are now speculating that a decision not to raise the cap may be another signal from the ECB to Greece that they are not going to be the first to swerve in this high-stakes game of chicken.
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