FRANKFURT: The European Central Bank will offer banks easier access to central bank loans by loosening its collateral standards for debt from countries getting bailouts or bond market support, ECB President Mario Draghi said on Thursday.
The ECB "decided to suspend the application of the minimum credit rating threshold in the collateral eligibility requirements" for debt issued or guaranteed by euro zone governments that are eligible for its new bond-buying programme "or are under an EU/IMF programme and comply with the attached conditionality," Draghi said.
He was speaking at a news conference where he outlined plans for the new 'outright monetary transactions' programme. This will allow the ECB to buy the bonds of countries that meet strict conditions, to help it bring short-term interest rates closer to its benchmark rate across the euro zone.
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