ECB decision on ELA to Greek banks crucial – SG

FXStreet (Barcelona) - Kit Juckes of Societe Generale, expects the ECB to maintain the liquidity assistance to Greek banks through the referendum in tomorrow’s meeting.

Key Quotes

“Greece will most likely fail to make the payment to the IMF today, but this is not a make-or-break issue. The three main credit rating agencies have said that failure to pay the IMF would not constitute a formal default. More crucial is the ECB continuing emergency liquidity assistance to Greece after the expiration of the bailout program today. The ECB will meet to decide on the ELA tomorrow and we expect assistance to be maintained at least through the referendum on Sunday.”