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They would then become eligible as collateral again, albeit at a steep discount.
European countries must guarantee Greek bonds so they will remain eligible as collateral for central bank lending.
Further downgrades by credit ratings agencies would mean Greek government bonds would no longer be eligible as collateral in borrowing cheap E.C.B. funds, starting in 2011.
From next year bonds will again only be eligible as collateral at the European Central Bank if they are rated A- or above by at least one of the three big rating firms.
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Innovation and intangible assets must become as attractive as collateral as bricks and mortar.
They're eligible as long as they're teaching".
Had it downgraded Greece, the country's government bonds would not have been eligible for use as collateral for loans from the ECB.
Currently the ECB is marking any sovereign debt above the BBB- as eligible collateral, and it'll keep that standard up until late 2010, which is good news for Greece.
Sovereign bonds that are eligible for banks to use as collateral against their borrowing from the ECB amounted to €6.6 trillion in the third quarter of 2014.
With Tuesday's changes, $1 trillion in securities that previously did not previously qualify as collateral will be eligible to be pledged to the central bank.
At the same time, lower-rated assets offered as collateral would be eligible for less funding, on a yet to be defined scale, starting in January, he said.
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