ECB Suspends Cyprus Government Bonds as Collateral
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The European Central Bank said Cyprus’s government bonds are temporarily ineligible as collateral after the Mediterranean island nation’s credit rating was cut by Fitch Ratings and Standard & Poor’s.
The Governing Council “has decided to temporarily suspend the eligibility of marketable debt instruments issued or fully guaranteed by the Republic of Cyprus for use as collateral in Eurosystem monetary policy operations,” the Frankfurt-based ECB said late yesterday in a statement.