- ECB’s Governing Council lifts current waiver of minimum credit rating
requirements for marketable instruments issued or guaranteed by the
Hellenic Republic
-
Suspension is in line with existing Eurosystem rules, since it is
currently not possible to assume a successful conclusion of the
programme review
-
Suspension has no impact on counterparty status of Greek financial institutions
-
Liquidity needs of affected Eurosystem counterparties can be
satisfied by the relevant national central bank, in line with Eurosystem
rules
The Governing Council of the European Central Bank (ECB) today
decided to lift the waiver affecting marketable debt instruments issued
or fully guaranteed by the Hellenic Republic. The waiver allowed these
instruments to be used in Eurosystem monetary policy operations despite
the fact that they did not fulfil minimum credit rating requirements.
The Governing Council decision is based on the fact that it is currently
not possible to assume a successful conclusion of the programme review
and is in line with existing Eurosystem rules.
This decision does not bear consequences for the counterparty status
of Greek financial institutions in monetary policy operations. Liquidity
needs of Eurosystem counterparties, for counterparties that do not have
sufficient alternative collateral, can be satisfied by the relevant
national central bank, by means of emergency liquidity assistance (ELA)
within the existing Eurosystem rules.
The instruments in question will cease to be eligible as collateral
as of the maturity of the current main refinancing operation (11
February 2015).