According to the central bank’s balance sheet as at the end of July 2015, ELA fell to €5.60 billion from €5.90 billion in June 2015.

ELA had peaked at €11.4 billion in April 2014, shortly after a haircut was imposed on deposits of more than €100,000 at BoC and the now defunct Laiki and capital controls were imposed.

ELA is used by banks when they have no access to the interbank market for liquidity and when the quality of their assets is not good enough for direct funding from the European Central Bank (ECB).

The dependence of the Cypriot banking system on direct financing from the ECB also fell in July 2015 by €6 million to €756 million from €762 million in June.

Since the beginning of this year, BoC has reduced its dependence on ELA by €1.8 billion from €7.4 billion at the end of 2014.

Source: InCyprus