Explaining ELA

The European Central Bank Thursday...announced that if Cyprus didn't finally iron out a deal with international creditors by Monday, then the ECB would cut off emergency funding to the country's banks.

"This is a hard deadline of Monday evening on the continued existence of the Cypriot banking system as we know it," said Lorcan Roche Kelly, chief Europe strategist at research firm Trend Macro in Ireland. "While it was never likely that it would survive intact, the ECB has this morning forced the issue."

Thursday, March 21, 2013
The Wall Street Journal