ECB temporarily suspends Greek bonds as collateral

(Reuters) - The European Central Bank said on Tuesday it was temporarily suspending the eligibility of Greek bonds for use as collateral in its funding operations and that national central banks would have to provide banks with liquidity using an emergency measure.

The move came after ratings agency Standard & Poor's cut Greece's long-term ratings to 'selective default' after Athens launched a bond swap to lighten its debt burden.

The ECB requires guarantees in the form of eligible collateral from all banks that seek central bank funds in its lending operations.

http://uk.reuters.com/article/2012/02/28/uk-ecb-greece-collateral-idUKTRE81R0F820120228