The European Central Bank will no longer accept Greek government bonds as collateral for its refinancing. This was announced by the Frankfurt institute itself on the eve of the second and perhaps last maxi auction of three-year loans in favor of the European banking market. Yesterday night yet another downgrade has arrived from Standard & Poor's on Greek debt, downgraded to “SD” (selective default) level.
But from the ECB they ensure that the rating cut did not affect the decision. The choice is rather linked to the procedure to reduce actual payments on Greek government bonds which is being carried out and which, with the participation of private individuals, should lead to a reduction of about 100 billion euros of the Greek debt burden.
Moreover, in a statement published today on its internet portal, the ECB specifies that already in mid-March the use of Greek bonds as collateral for its refinancing should become possible again, when a series of support measures promised by the heads of state and government of the euro area in both July and October 2011 will have come into action. By mid-morning, the Athens Stock Exchange had dropped by 0,86%.
