A continuation of the deadlock on Monday will immediately shift focus to Wednesday’s bi-weekly ECB review of the ELA limits of Greek banks, in the event of failure, we would expect the ECB to become more explicit on the timing of when ELA funding would be withdrawn or capped.

Deutsche Bank strategist George Saravelos

Categorized in : Business

Ultimately, the alternative of ELA withdrawal and eventual capital controls for Greece is worse for all sides involved. But whether progress can be achieved under very pressing deadlines and large differences of opinion on the underlying policy path between the two sides remains to be seen.

Deutsche Bank strategist George Saravelos