FRANKFURT (MNI) – The European Central Bank has suspended its
minimum collateral eligibility threshold for debt issued or guaranteed
by the Greek government, the central bank announced on Monday.
The Greek austerity program, which the ECB considers “appropriate”,
along with the strong commitment from the Greek government, is the basis
for the suspension, the ECB added. See verbatim text below:
“The Governing Council of the European Central Bank (ECB) has
decided to suspend the application of the minimum credit rating
threshold in the collateral eligibility requirements for the purposes of
the Eurosystem’s credit operations in the case of marketable debt
instruments issued or guaranteed by the Greek government. This
suspension will be maintained until further notice.
The Greek government has approved an economic and financial
adjustment programme, which has been negotiated with the European
Commission, in liaison with the ECB, and the International Monetary
Fund. The Governing Council has assessed the programme and considers it
to be appropriate. This positive assessment and the strong commitment of
the Greek government to fully implement the programme are the basis,
also from a risk management perspective, for the suspension announced
herewith.
The suspension applies to all outstanding and new marketable debt
instruments issued or guaranteed by the Greek government.”
–Frankfurt bureau: +49-69-720 142, email: frankfurt@marketnews.com
[TOPICS: M$X$$$,M$$EC$,MT$$$$,M$$CR$,MGX$$$]