FRANKFURT (MNI) – The European Central Bank has decided to loosen
significantly its collateral rules for banks to access ECB funds, the
German daily Die Welt reported Thursday.
The new rules are aimed particularly at mortgage-backed securities,
many of which have junk-bond status from ratings agencies and have been
until now rejected by the ECB, but which are heavily owned by Spanish
banks.
The decision was taken at the ECB’s mid-month Council meeting
Wednesday, the paper reported. Decisions from the mid-month meeting are
typically released by the ECB on Friday.
The relaxed standards would allow Spanish banks to access ECB
liquidity without having to resort to Emergency Liquidity Assistance.
— Frankfurt bureau: +49 69 720 142; email: frankfurt@marketnews.com
[TOPICS: M$X$$$,M$$EC$,MT$$$$,M$$CR$,M$S$$$]
