Thursday, 5 February 2015

ECB stops accepting Greek bonds as collateral

The European Central Bank announced on Wednesday that from 11 February, Greek sovereign debt will cease to be eligible as collateral for its liquidity operations.

The Governing Council of the European Central Bank (ECB) today decided to lift the waiver affecting marketable debt instruments issued or fully guaranteed by the Hellenic Republic. The waiver allowed these instruments to be used in Eurosystem monetary policy operations despite the fact that they did not fulfil minimum credit rating requirements. The Governing Council decision is based on the fact that it is currently not possible to assume a successful conclusion of the programme review and is in line with existing Eurosystem rules.

The decision by the ECB came too late to affect European markets on Wednesday but in the US, the S&P 500 fell 0.4 percent.

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