ECB suspends eligibility of Greek bonds as collateral

The European Central Bank said Friday it would suspend ?for the time being? the eligibility of Greek sovereign bonds as collateral for its loans to banks.

Greek sovereign bonds ?will become for the time being ineligible for use as collateral in eurosystem monetary policy operations,? the ECB said in a statement.

The ECB said its policy-setting governing council would re-assess their eligibility once the so-called ?troika? of experts from the ECB, the European Commission and the International Monetary Fund had completed their review of the progress made by Greece in meeting the conditions of its bailout programme.

Until then, banks? liquidity needs ?may be addressed by the relevant national central bank in line with existing eurosystem arrangements,? the statement said. [AFP]

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