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    ECB reinstates waiver on Greek debt Ani Salama

    The European Central Bank reinstated the waiver of Greek debt, which means it would start accepting Greek government debt as collateral for the ECB's regular lending to banks.The decision to open a funding facility that had been shut for 16 months will allow Greek banks to access cheaper funding than through the ELA (emergency liquidity assistance).The Governing Council “decided to reinstate the waiver affecting the eligibility of marketable debt instruments issued or fully guaranteed by the Hellenic Republic,” the institution said in a statement on Wednesday. “The Governing Council also acknowledges the commitment of the Greek government to implementing the ESM macroeconomic adjustment program and, therefore, expects continued compliance with its conditionality.”The ECB will examine the eligibility of Greek bonds for QE at a later stage. “The Governing Council will examine possible purchases of Greek government bonds under the public sector purchase program at a later stage,” the ECB said in the statement. The decision will take “into account the progress made in the analysis and reinforcement of Greece’s debt sustainability, as well as other risk management considerations.”

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