ECB softens conditions for Irish collateral

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The European Central Bank said Thursday it had suspended the minimum credit rating for debt instruments issued or guaranteed by the Irish government to be accepted as collateral for central bank loans.

The ECB's Governing Council said the suspension was based on its positive assessment of the Irish government's decision Thursday to conduct a 24-billion-euro capital increase of four Irish banks and to deleverage and downsize the banking sector.

"The Governing Council therefore deems debt instruments issued or guaranteed by the Irish government to fulfil the credit standards required for collateral in Eurosystem credit operations," the ECB said in a statement.


© 2011 AFP

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