Emergency Liquidity Assistance (ELA) granted by the Central Bank of Ireland
(CBI) has increased substantially in recent months.
ƒÞ ELA is not part of the Eurosystem operations of the CBI ¡V any resulting losses
are not shared with the rest of the Eurosystem, and likely carry a State
guarantee from the Irish sovereign.
ƒÞ Increasing use of ELA highlights i) continuing funding problems of Irish banks,
ii) increasing reluctance of ECB to fund distressed euro area banks, iii) question
marks over the solvency of the consolidated Irish sovereign and banking sector.