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Dependence of banks on ELA unchanged in January

The dependence of the Cypriot banking system on Emergency Liquidity Assistance (ELA) remained unchanged in January at €9.55 billion, with a slight decrease compared with December 2013.

The amount decreased only by €90,000 according to figures published yesterday by the Central Bank of Cyprus.

Last December, the Cypriot banking system managed to reduce borrowing from ELA by €224 million compared with last November when assistance from the ELA amounted to €9.77 billion, while in October it was € 9.85 billion.

The significant drop in borrowing from ELA began in August, when the Bank of Cyprus exited resolution and became again accepted as counterparty credit institution by the European Central Bank (ECB) for monetary policy, and thus could be funded by the Eurosystem.

The Bank of Cyprus has the ability to use Republic of Cyprus bonds, as well as bonds guaranteed by the Republic, in order to receive direct funding from the ECB through monetary policy transactions.

The dependence of Cypriot banks on ELA had reached its highest point in March 2013, specifically €11.40 billion, and dropped to €9.85 billion in August 2013, where it remained until October.

According to the figures, the total value of gold held by the CBC reached €389.19 million on January 31.

The general government debt to the Central Bank reached €1.35 billion. (CNA)

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