Euro crisis: ECB stops special rule for Greek bonds – Times Online

Euro crisis: ECB stops special rule for Greek bonds – Times Online

The Greek government gets a warning shot by the ECB: This will continue to accept Greek government bonds over security for bank loans

Updates February 5, 2015 07:52 clock

The ECB increased the pressure on Greece. | © Kai Pfaffenbach / Reuters

The European Central Bank (ECB) has special permission for the use of Greek government bonds repealed. The Bonds may no longer be accepted as collateral for bank loans in the future, the ECB said. So far, Greece has the debt instruments can use accordingly, even though they do not meet the normal minimum requirements on credit ratings.

The Governing Council’s decision was based on that at present no more with a successful completion of the review of the reform program could be expected, a statement said.

The implementation of the reform requirements is a condition of disbursement of aid to Greece. The new government under Prime Minister Alexis Tsipras aims to change course and promoting a new rescheduling model. A few hours before the ECB announcement, the Greek Finance Minister Yanis Varoufakis had met with ECB President Mario Draghi.

emergency loans the Bank of Greece

The now canceled special arrangements for the refinancing of Greek banks shows how little hold the monetary authorities of the 19 euro countries from the plans of the new Greek government. As a result of the decision, the Greek central bank will continue its domestic financial institutions may soon have enhanced access to billions of emergency liquidity assistance under the arms, so-called ELA aids (Emergency Liquidity Assistance). . Would the Bank of Greece characterized in trouble, then would have to cover the State

Already, several banks dependent on this support: Three of the four Greek banks have already quoted by Reuters ELA support from the adopted the Greek central bank, when reinforced with them after the election victory of the left SYRIZA coalition of Alexis Tsipras cash outflow.

Bundesbank President Weidmann strict criteria

ELA loans must be approved by the ECB. Bundesbank President Jens Weidmann calls it a hard line of the central bank. “I am of the opinion that we should apply strict standards in ELA,” Weidmann said the Börsenzeitung .

The Greek Finance Ministry said after the ECB’s decision, the financial institutions are fully protected by the access to the PA emergency liquidity assistance. However, the measure of the ECB increasing the pressure on the Euro Group to find a solution that is in the mutual interest of Greece and the euro zone, the ministry said on.

The Euro was given the ECB’s decision temporarily to $ 1.1315 after, ending the brief recovery on $ 1.1534 on Tuesday.