Stocks give up gains as ECB rejects Greek paper as acceptable collateral

zxnk

"The Governing Council decision is based on the fact that it is currently not possible to assume a successful conclusion of the program review and is in line with existing Eurosystem rules." Prior to this action, the ECB had a waiver in place which allowed the use of Greek sovereign debt as collateral for borrowings.

zxnk

Greek will default at the end of Feb if German finally think enough is enough

chinesebuffet

讨价还价而已！

源济

欧央行不再接受希腊国债作为抵押品

　　新浪财经讯 北京时间2月5日凌晨消息，欧洲央行[微博]周三称，该行将取消此前向希腊国债授予的一项豁免权，该豁免权允许希腊金融机构使用希腊国债作为担保品来从欧洲央行获取贷款。受此消息影响，美股尾盘高台跳水迅速转跌，标普收低0.42%。

　　欧洲央行发表声明称：“目前不可能假设(希腊)援助计划的审查将可成功完成。”

　　由于希腊国债的主权债务评级为“垃圾级”，因此低于欧洲央行设定的最低门槛。此前，希腊金融机构一直都靠上述豁免权来使用希腊国债作为担保品，从而能以较低的借债成本从欧洲央行贷款。

　　希腊金融机构仍可继续通过欧洲央行的应急贷款计划筹集资金。根据这项计划，贷款的信贷风险由希腊央行承担，且这种贷款的利率较高。(金良/编译)

bigbadwolf

In a press release that jolted the markets, the ECB announced that it will no longer accept Greek government debt as collateral starting next week. But this news is not necessarily a potential liquidity disaster for Greek banks.

The Greek banking system is not particularly reliant on Greek sovereign debt as collateral. Figures from the Bank of Greece show that Greek financial institutions currently have about 21 billion euros of Greek sovereign exposure. Furthermore, this debt has already been subject to valuation haircuts of up to 40% when used as collateral at the ECB.

All collateral that the Greek banks use for ECB operations that is not Greek sovereign debt is still perfectly good to use. This decision of the ECB is against the Greek sovereign, not the Greek banks.

Further, any shortfall in liquidity will be fully made up by Emergency Liquidity Assistance that will be issued by the Greek Central Bank at its own risk.

So, all together, the move from the ECB should have very little immediate effect on the Greek banks - provided there is not a complete loss of confidence in the Greek banking system in the coming days - and should be viewed as what it is: The ECB is pressurizing the Greek government.

The Greek finance minister Varoufakis has been agitating for Greek debt relief since his appointment after January's election. Today the ECB gave its answer to his moves. If the Greek government does not agree to re-enter a program, then the ECB will not allow its debt to be used as collateral.

The immediate effects should be seen as limited within market space, but huge within the political realm.

The ECB has often been accused of placing too much political pressure on governments. Today's moves shows that it has chosen to ignore those accusations once again and do what it feels is right.

bigbadwolf

The move from the ECB today is a copy of the suspension of Greek debt that occurred in February 2012.

Following the 2012 suspension, the Greek central bank issued Emergency Lending Assistance (ELA)—a liquidity operation at the national central bank level that's outside normal ECB monetary policy—to Greek banks that increased the total to

bigbadwolf

PRESS RELEASE
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).

Marketable debt instruments issued or fully guaranteed by the Hellenic Republic will become in principle eligible upon activation of the collateral enhancement scheme agreed by the Heads of State or Government of the euro area on 21 July 2011, and confirmed on 26 October 2011, together with a number of other measures aimed at assisting Greece in its adjustment programme. This is expected to take place by mid-March 2012.

我是谁

bigbadwolf 发表于 2015-2-4 05:36 PM
PRESS RELEASE
28 February 2012 - Eligibility of Greek bonds used as collateral in Eurosystem mone ...

so。。。。。。tomorrow will be like Feb29 2012？
Thanks！