Greek debt crisis: ECB not raising funding limit

The European Central Bank says it not increasing its emergency funding for Greek banks, amid fears that Greece may default on its debts on Tuesday.

The decision not to raise the cap on aid to Greece increases the likelihood of bank closures and restrictions on cash withdrawals, analysts say.

That in turn could eventually result in Greece leaving the euro.

The ECB said that it stood ready to review the decision and would work closely with the Bank of Greece.

The current ceiling for the ECB's emergency funding - Emergency Liquidity Assistance (ELA) - is €89bn (£63bn). It is not clear if all that money has been disbursed.

Those funds are used by banks to provide cash to depositors who want their money back.

The ELA decision may mean Greek banks do not open on Monday to prevent a run ahead of the imposition of capital controls,