ECB’s Constancio Signals Greek Waiver Could End

Vitor Constancio signaled that the European Central Bank stands ready to end its acceptance of Greece’s junk-rated debt for bank funding if the government drops out of an aid program.

If a nation has ratings below investment grade, “then a waiver is granted provided that the country is under a program of the European Union/International Monetary Fund,” the ECB vice president said on Saturday in Cambridge, England. “That is a rule, so there will be no surprises if we find out that a country is below that rating and there’s no longer a program that that waiver disappears.”