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Greek banks seek liquidity as cash withdrawals mount ahead of snap election

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Greek banks seek liquidity as cash withdrawals mount ahead of snap election

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Two Greek banks the Greekeuro bank and Alpha bank have appealed for liquidity assistance from the country’s central bank.

The request indicates that banks are coming under pressure ahead of the snap election on January 25.

The Greek Central Bank has an Emergency Liquidity Assistance facility, but ELA loans are more expensive than ECB assistance.

Greeks have increased bank withdrawals since the government came close to collapse, but the money appears to have stayed in the country calming fears off a capital flight as occured in 2012.