The dependence of Bank of Cyprus (BoC) on the Emergency Liquidity Assistance (ELA) recorded a further decrease to 8.68 billion euro in July from 8.78 billion the previous month, thus continuing the downward trend recorded in recent months, according to figures released Wednesday by the Central Bank of Cyprus.
In May, ELA amounted to 9.23 billion euro whereas in April amounted to 9.40 billion euro.
Furthermore, the dependence of the Cypriot banking system on monetary policy instruments (Eurosystem) recorded a big decrease by 550 million euro in July, falling to 850 million euro from 1.40 billion euro the previous month.
The significant reduction in banking system funding from the ECB is mainly due to the fact that the Government repaid on 1 July 950 million euro out the amount of 1.98 billion euro of a sovereign bond held by the Bank of Cyprus, thus enabling the bank to repay part of its dependence both on ELA and the Eurosystem.
