Weidmann Says ECB May No Longer Take Greek Debt If Extended

European Central Bank Governing Council member Jens Weidmann said the central bank may no longer be able to accept Greek sovereign debt as collateral in its refinancing operations if bond maturities are extended.

“A prolongation of Greek government bonds in an environment of prevailing strong doubts about the sustainability of public finances would make it impossible to accept them as collateral for refinancing operations under the existing rules,” Weidmann, who heads the Bundesbank, said at a conference in Hamburg today. “Consequently large parts of the Greek financial sector would be cut off from funding.”