ECB suspends use of Greek bonds as collateral

The European Central Bank has suspended the use of Greek government bonds as collateral for institutions trying to access central bank loans, in the latest twist in the unfolding crisis.

According to reports, the ECB is stopping the use of Greek government bonds as collateral as part of Greece's plan to carry out a debt reduction negotiated with its creditors. The move, which is temporary, comes after Standard & Poor's downgraded Greece's credit rating to 'selective default' after the latest bailout package was signed off by Germany. The country approved a €130bn euro rescue package for Greece, despite a backlash in Germany which saw Chancellor Angela Merkel face tough political and public opposition to any further support. Today's suspension by the ECB will affect...