ECB to Reduce Haircuts on Greek Government Bonds as Yields Jump
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The European Central Bank said it will reduce the risk premium on Greek collateral submitted by banks, while denying it’s acting in response to market turmoil.
“The decision foresees that the current haircuts are lowered, in view of the overall improved market conditions for Greek government-related assets since 2013,” an ECB spokesperson said in an e-mailed statement today. “The decision should by no means be viewed as an ad-hoc reaction to the most-recent market stress.”