ECB decides to lift

The Executive Council of the European Central Bank decided at its meeting this week to lift the waiver that has allowed the country’s banks to use junk-rated Cypriot sovereign bonds as collateral to draw liquidity from the ECB, owing to Cyprus’s exit from its international bailout program.

The waiver is scheduled to be lifted on April 1.

Now Cypriot bonds will be treated according to the same terms as those of the rest of the eurozone, according to Wednesday’s decision, which means that until they improve on their junk rating they cannot be used for the provision of cheap liquidity to Cypriot banks.

The waiver was introduced for as long as Cyprus remained in the bailout program.

Source: ekathimerini.com