Euro Unravel

Glenn Reynolds

The central bank of Germany will no longer accept bank bonds backed by Ireland, Greece and Portugal as collateral.

From the article:

…Last week, the ECB [European Central Bank] gave the 17 national central banks in the Eurosystem permission to reject collateral bonds backed by governments that have received a bailout from the European Union and International Monetary Fund or whose credit rating falls below ECB standards.

Taking advantage of that freedom, the Deutsche Bundesbank has decided to no longer accept bonds guaranteed by Ireland, Greece and Portugal, starting with €500 million ($665.1 million) already on its balance sheet, a spokeswoman said on Friday. All three countries are receiving loans from the EU and the IMF to keep their governments afloat…

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