Starting next Wednesday, the European Central Bank will stop accepting Greek sovereign bonds and other Greek government backed assets as collateral for loans.Reuters reports that the eligibility of such assets will be reassessed after the combined ECB/IMF/European commission evaluates Greek compliance with the terms of the second bailout.
Struggling Greek banks will have to turn to their national central bank to get emergency liquidity aid (ELA) funds at more expensive terms.
Other Eurozone banks will be subject to this same restriction, but hold a much lower proportion of Greek debt and will not be affected to the same degree.
Read the full story at Reuters
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