ECB’s Paramo Says Voluntary Debt Rollover Not a Credit Event

European Central Bank Executive Board member Jose Manuel Gonzalez-Paramo said a “decentralized, voluntary” Greek debt rollover agreement should not be considered a “credit event.”

Asked if the ECB would continue accepting Greek debt as collateral even if credit rating agencies do consider such an agreement to be a credit event, he said the bank “will see.”

“The only thing I can say is that we can only lend to lenders that are solvent against collateral that is appropriate according to our statutes,” Gonzalez-Paramo told reporters in Malaga, Spain, today. “We will see at the time what the situation is.”

To contact the reporter on this story: Emma Ross-Thomas at erossthomas@bloomberg.net

To contact the editor responsible for this story: Matthew Brockett at mbrockett1@bloomberg.net

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