EUROPEAN Central Bank (ECB) policymakers may sanction possible further emergency funding for Greece’s banks yesterday amid the first clear signs that the wider eurozone economy is picking up.

    With an ECB survey showing banks expecting the strongest demand for company loans in over a decade, President Mario Draghi will be able to claim an early success for the bank’s newly launched 60-billion-euro (US$78 billion) a month money printing program.

    The ECB’s borrowing rates are all but certain to be held at record lows when policymakers meet, but continued wrangling between Greece and the eurozone over reforms for aid is casting uncertainty over the 19-country currency bloc.

    Nonetheless a 1-trillion-euro-plus money printing scheme to buy chiefly government bonds is underpinning confidence and some predict that Draghi will underscore his commitment to quantitative easing yesterday.

    “We expect Draghi will confirm that the full implementation of the (QE) program will be needed despite the recent strong data and that they are not even pondering any changes,” said Dirk Schumacher, an economist at Goldman Sachs.

    Time is running out, however, for Athens to improve a package of reforms required for the release of eurozone loans that it needs to stay afloat.

    Draghi may reveal whether the ECB’s decision-making Governing Council extended the limit on emergency liquidity that can be drawn by Greek banks. This has been rising as savers, worried about the country’s prospects, withdraw deposits.

    Were Greece ultimately to tumble out of the euro, it would deal a blow to the credibility of the currency union. Athens was first bailed out almost five years ago by the eurozone, with another aid deal in 2012, but its future remains uncertain.

    Draghi is likely to address the eurozone’s improving prospects. In its World Economic Outlook on Tuesday, the International Monetary Fund raised growth expectations for all the major economies in the bloc, especially Spain.(SD-Agencies)