Eurozone crisis: ECB saves Greek banks - for now - with €1.1bn emergency liquidity extension

The European Central Bank (ECB) has thrown Greek banks a lifeline and agreed to extend its Emergency Liquidity Assistance (ELA) by €1.1bn (£780m, $1.25bn) after a request from the Bank of Greece.

Greek banks were drained as civilians rushed to withdraw money. Some citizens were said to be transferring their money out of the country to safety, the BBC reported. Greece and its creditors did not agree in talks in the run up to the country's payment deadline to the International Monetary Fund on 30 June.

The ECB is reviewing the ELA it is providing Greek banks on 22 June, according to Reuters, but decided to raise the liquidity ceiling temporarily, in order to help the banks survive the weekend.

Greek citizens have withdrawn a total of €3bn, according to the BBC. The country's central bank asked for an extension worth €3bn, but the ECB decided to only provide temporary relief by providing €1.1bn with a higher interest rate than normal loans by the European bank.

A Greek bank official told the Wall Street Journal: "In a teleconference, the ECB provided extra ELA funding. There is no problem with the financing of Greek banks. We expect a positive outcome to Monday's meeting."