FRANKFURT, Germany, June 28 (UPI) -- The European Central Bank will maintain Emergency Liquidity Assistance (ELA) for Greece but will not raise it, capping it at €89 billion and resulting in mounting pressure for capital controls.
Greek banks are under the threat of running out of money as people in the country make bank runs to withdraw their funds due to fear that their account balances will soon be meaningless.
The ECB has been raising its ELA for Greece steadily this year, raising it from about €60 billion to the current cap of €89 billion -- meaning Greece's emergency funds will run out soon.
"The Bank of Greece, as a member of the Eurosystem, will take all measures necessary to ensure financial stability for Greek citizens in these difficult circumstances," Governor of the Bank of Greece Yannis Stournaras said in a statement.
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Greece could implement capital controls, such as restrictions on bank withdrawals, to allow Greece to function until next Sunday, when a referendum is set to take place.
The surprise referendum is to decide whether the terms made by Greek's creditors are acceptable.
"We continue to work closely with the Bank of Greece and we strongly endorse the commitment of Member States in pledging to take action to address the fragilities of euro area economies," ECB President Mario Draghi said in a statement.
Greek bailout funds expire on Tuesday, the same day Greece is due to make a €1.5 billion payment to the International Monetary Fund, which Greece is under the threat of defaulting.
The financial crisis in Greece threatens to push the country out of the Eurozone financial bloc, which includes France, Germany, Italy, the Netherlands, Portugal and Spain.
