IMF welcomes ECB’s move to suspend ratings floor

The IMF says the ECB decision to suspend minimum ratings on government debt offered for collateral at the ECB. The decision will provide important support to Greece by helping maintain financial stability.

Critics say it will allow Greece to issue short-term debt to Greek banks which the banks can then repo to the ECB. In effect, the ECB will be bailing out Greece in addition to the EU and the IMF…