ECB’s Bini Smaghi: Distressed country must rigorously follow EU/IMF programme for its bonds to remain acceptable as ECB collateral

• Forcing private sector involvement in wrong way will end up costing taxpayer more
• Risk of sovereign default could arise without monitising debt and bailouts between countries

Well, see it all kicked off in my absence. Trigger seems to have been this story talking about possible EUR 15o bln new Greek aid deal (thanks to Chris for posting story so quickly)