The European Central Bank on Tuesday proceeded with a landmark decision for post-bailout and now coronavirus-battered Greece, announcing that Greek state bonds will now be accepted as collateral for access to liquidity.
While Greek bonds remain rated as “junk” for international investors, the ECB’s decision to increase its risk margins comes amid now accelerated efforts to prop up the Eurozone’s economy in the face of the pandemic and its repercussions.
The move will significantly assist the Mitsotakis government’s efforts to finance a pandemic-smothered economy, while bolstering systemic banks’ liquidity.
Taking to the official prime ministerial Twitter account later in the evening, Kyriakos Mitsotakis posted the following Tweet: “We welcome the ECB’s decision to accept Greek government bonds as collateral in the Eurosystem, a move which will further boost liquidity in the economy. Acting decisively and with a concrete economic plan, Greece will come out even stronger through these challenging times.”
