As discussed
earlier, Bundesbank may have started a trend. Other Eurozone core central banks are starting to refuse accepting collateral from troubled periphery nations. Austrian central bank made the announcement this morning.
FxStreet.com: Spokesman for the Austrian central bank said: "we will do that as well , we are talking about minimal amounts. It will have little impact on overall collateral" the ECB on March 23 said members are no longer obliged to accept bank bonds guaranteed by governments whose credit assessments do not comply with the benchmark for mimimum requirements of high credit standards This leaves Greece , Portugal and Ireland unable to use such bonds to get funding from subsidiaries in Germany and Austria.
The impact on current collateral is insignificant but it is sending a massage of an increasing rift within the Eurozone. It also opens the possibility that the "restricted list" may be broadened to include other, much larger periphery nations.
SoberLook.com
