Home > Uncategorized > Greece – bankrupt by any other name

Greece – bankrupt by any other name

Update (2): information from Brussels via Peter Siegel’s ‘Brussels Blog‘. As the Finnish and Dutch parliaments still have to vote for the bailout (today and tomorrow) – Greek banks have no liquidity at the moment. Why did S&P not wait till tomorrow?

Update: the ‘rating’ mentioned in the press release is the downgrading of Greek bonds by Standard and Poor’s. See here and here.

From a press release from the ECB:

“28 February 2012 – Eligibility of Greek bonds used as collateral in Eurosystem monetary policy operations

The Governing Council of the European Central Bank (ECB) has decided to temporarily suspend the eligibility of marketable debt instruments issued or fully guaranteed by the Hellenic Republic for use as collateral in Eurosystem monetary policy operations. This decision takes into account the rating of the Hellenic Republic as a result of the launch of the private sector involvement offer.

At the same time, the Governing Council decided that the liquidity needs of affected Eurosystem counterparties can be satisfied by the relevant national central banks, in line with relevant Eurosystem arrangements (emergency liquidity assistance).”

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