FRANKFURT, July 29 (Reuters) - The European Central Bank's policymakers have agreed to publish the rules under which euro zone national central banks can provide Emergency Liquidity Assistance (ELA) to lenders, a German newspaper reported.
An ECB spokeswoman declined to comment on the report on Monday by the Frankfurter Allgemeine Zeitung (FAZ), which cited a central bank insider in its story.
The ECB's Governing Council must approve provision of ELA, which national central banks may provide to solvent lenders in their jurisdiction in emergency situations, such as when the country's sovereign bonds are ineligible for use as collateral for ECB refinancing operations due to their low credit ratings.
The Governing Council reviews banks' eligibility for ELA every two weeks and needs a two thirds majority to stop the funds. Greek, Cypriot and Irish banks have been recipients.
Critics say the practise funnels central bank money to insolvent banks and is intransparent.
The FAZ report came after another German newspaper, the Sueddeutsche Zeitung, reported two senior ECB policymakers as saying the ECB could soon publish the minutes of its Governing Council meetings, which until now have been kept under wraps.
(Writing by Paul Carrel; editing by Ron Askew) Keywords: ECB/EMERGENCYFUNDS
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