ECB Text: To Assess Eligibility Of Greek Bonds As Collateral

FRANKFURT (MNI) – The European Central Bank said Friday that Greek
government bonds would not be eligible for use as collateral in
Eurosystem monetary policy operations pending an assessment by the
Governing Council after a review by the Troika. Following is the
statement by the ECB:

Due to the expiration on 25 July 2012 of the buy-back scheme for
marketable debt instruments issued or fully guaranteed by the Hellenic
Republic, these instruments will become for the time being ineligible
for use as collateral in Eurosystem monetary policy operations.

In line with established procedures, the Governing Council of the
European Central Bank (ECB) will assess their potential eligibility
following the conclusion of the currently ongoing review, by the
European Commission in liaison with the ECB and the IMF, of the progress
made by Greece under the second adjustment programme.

Liquidity needs may be addressed by the relevant national central
bank in line with existing Eurosystem arrangements.

[TOPICS: M$X$$$,M$Y$$$,MGX$$$,M$$EC$]