Trichet Says EU to Back Greek Collateral in Case of Default

Jean-Claude Trichet said the European Central Bank may be able to accept Greek collateral in the event of a default because euro-area states have agreed to provide guarantees.

Speaking in Brussels after euro-area leaders agreed on a 159 billion euro ($229 billion) plan to stem the Greek debt crisis, ECB President Trichet said heads of government had agreed to back Greek bonds up to the value of 35 billion euros in refinancing operations in the event that the country is judged in default on its loans.