ECB’s collateral move adds pressure to Greek negotiations
Greek banks can plug the gap using ELA
The European Central Bank (ECB) will cease to accept debt issued or guaranteed by the Greek government as collateral in its refinancing operations on February 11, increasing the pressure on politicians to agree a new deal on Greece's future.
Yesterday evening the ECB announced it would cancel the "waiver" that allows banks to pledge the debt as collateral with the central bank despite the fact it does not meet the minimum credit rating requirements.
The ECB justified the decision by arguing it
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