ECB: Greek-backed bonds ineligible as collateral

FRANKFURT (MarketWatch)
The European Central Bank on Friday said debt issued or fully guaranteed by the Greek government will become "for the time being ineligible" for use as collateral in monetary policy operations due to the July 25 expiration of a buyback program
The ECB said that, "in line with established procedures," its Governing Council would assess the potential eligibility of Greek bonds at the conclusion of an ongoing review of Greece's compliance with its bailout terms by the European Commission, the ECB and International Monetary Fund
The ECB said liquidity needs may be addressed by the Greek central bank "in line with existing Eurosystem arrangements."