Banks can still access funding through the Emergency Liquidity Assistance (ELA) programme, run by Greece's central bank, and at a much higher cost to the banks.
"As long as there is no program, the liquidity assistance for the Cypriot banks is endangered," said a German government official, speaking on condition of anonymity on Tuesday because the negotiations had not been completed.
On June 28th, the European Central Bank declined to increase the level of day-to-day credit available, under a program called Emergency Liquidity Assistance, to Greece's ailing private banks; they were almost out of cash, after months of a slow-motion bank run.
But the European Central Bank said banks could continue to draw cash from national central banks temporarily under a separate program known as emergency liquidity assistance.
Dijsselbloem declined to say whether so-called emergency liquidity assistance could continue without a bailout programme in place.
star, sought help through the assistance program.
Under European Central Bank rules, so-called emergency liquidity assistance is available only to solvent banks.
The ECB will have legal difficulties maintaining emergency liquidity assistance to Greece.
They have had to turn to the Greek central bank to tap "emergency liquidity assistance".
