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One other ongoing concern: Greece gets much of its short-term borrowing taken care of by the European Central Bank, by using government bond as collateral in exchange for cheap loans.
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Mike Trippitt at Oriel Securities said: "Everyone knows banks use bonds as collateral to secure short-term lending".
South Street uses investment houses to raise short-term funds using bonds as collateral.
The European Central Bank said it would accept Greek bonds as collateral regardless of any credit downgrades.
For the ECB to announce that it will not accept Greek bonds as collateral would be counterproductive.
Second, the ECB could induce commercial banks to seek a swift agreement by refusing to accept "old" bonds as collateral.
Banks in the troubled countries use their domestic government bonds as collateral for E.C.B. loans that they need to survive.
The ECB has threatened not to accept Greek government bonds as collateral if the country's debt were restructured.
Equally, the ECB could scarcely refuse Greek government bonds as collateral for central-bank money even if they were junk.
For the most part, they met a dusty response; the European Central Bank stopped taking Greek government bonds as collateral.
The hike in the margin rate to an usually high 45% could put further pressure on the banks as they use such bonds as collateral to raise cash.
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