Frankfurt — From August 21, the European Central Bank (ECB) will revoke an exemption granted to Greece from its minimum credit rating requirement, it said on Friday. This will shut banks’ access to cheap central bank cash because Greek government bonds are rated junk. Greece will exit its third bailout programme later in August, and the "waiver" from the ECB’s minimum credit rating requirement can only be granted to countries in bailout programmes. While revoking the waiver could increase funding costs for banks and keep Greece out of the ECB’s €2.6-trillion bond purchase scheme, a "clean exit" from the bailout is still likely to shore up confidence as Greece would finally be standing on its own feet after being propped up for years by international lenders. Reuters
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.