In his presentation, Professor Gortsos presented the legal basis of the ELA in the euro area on the basis of his forthwork European Central Banking Law, The Role of the European Central Bank and National Central Banks under European Law (Palgrave Macmillan). In a traditional approach, often referred to as “constructive ambiguity,” the conditions under which central banks can exercise their power to act as lenders of last resort are not explicitly defined in legislation or legislation. This also applies to the context of the euro area, in which the ELA is not included in the EU treaties: the relevant procedural procedures are set out in the ECB`s 2017 Agreement on Cash Aid, which sets out the technical specifications for ELA procedures. In his presentation, Professor Gortsos explained who provides the ELA, under what conditions and when and how the ELA can intervene in the objectives and missions of the Eurosystem. The European Central Bank (ECB) today publishes the text of the Emergency Liquidity Assistance Agreement (ELA) following a decision by the Governing Council on 17 May 2017 to further increase transparency with regard to the ELA. In December, the ECB lowered the ceiling on emergency liquidity aid (ELA) by 900 million euros to 4.0 billion euros ($4.55 billion). ($1 – EUR 0.8839) (Report by Angeliki Koutantou and Lefteris Papadimas) He then commented on the presentation in which he highlighted the application and penetration of the agreement on the basis of past experience of the euro crisis. In the ensuing debate, the two speakers highlighted lessons learned from past episodes and possible opportunities for the future, particularly for possible future revisions to the current ELA mechanism. ATHENS, Jan 24 (Reuters) – Greece`s central bank said on Thursday it had halted the release of cash assistance data for Greek lenders after the facility fell below the european central bank`s threshold in 2017. “In accordance with the agreement of 17 May 2017 on emergency cash assistance, the Bank of Greece will stop issuing the press release on the ELA ceiling for Greek banks, with the ELA regime no longer exceeding the threshold of 2 billion euros,” the Bank of Greece said in a statement. The ELA aims to provide central bank currency to creditworthy financial institutions facing temporary liquidity problems outside of the normal monetary policy operations of the Eurosystem. Emergency Liquidity Assistance (ELA) is the form in which creditworthy credit institutions can, in exceptional cases, benefit from central bank loans, either temporarily and against appropriate guarantees.
As a liquidity crisis management tool, it differs from the monetary policy measures implemented by central banks. The rules and procedures governing the determination of the ELA are set out in the ELA agreement, which also defines the role of the Governing Council in making the ELA available by national central banks (NCBs), in particular with regard to the assessment, in accordance with Article 14.4 of the statutes of the European Central Bank System (SEBC) and the ECB, of the compliance of the provision of the ELA by the Eurosystem CES. For media inquiries, please contact William Lelieveldt, Tel: `49 69 1344 7316. Reproduction is permitted, provided the source is recognized. The last online seminar of the Florence School of Banking and Finance, on 17 February 2020, focused on Christos Gortsos, professor of public economic law at the Law School of the National and Capeodistrian University of Athens, and the former Vice-President of the European Central Bank, Vétor Consténcio, on emergency liquidity assistance in the Eurosystem.