STOCK MARKET WATCH -- Thursday, 20 December 2012

[Demeter]

27. ECB Eases Greek Banks’ Access to Cash as Reform Efforts Rewarded

http://www.bloomberg.com/news/2012-12-19/ecb-eases-greek-banks-access-to-cash-as-reform-efforts-rewarded.html

The European Central Bank acted to ease Greek banks’ access to funding by accepting the country’s bonds in exchange for cash for the first time since July.

The Frankfurt-based ECB said today it will take debt instruments issued or guaranteed by the Greek government as collateral again, citing “the wide range of measures already implemented by the Greek government in the areas of fiscal consolidation, structural reforms, privatization and financial sector stabilization.”

Greek banks had been reliant on more expensive emergency funds from their own central bank since the expiry of a temporary guarantee on July 25. An agreement by European officials last week to pay Greece a 49.1 billion euro ($65 billion) slice of European Union and International Monetary Fund bailout loans has boosted optimism that the debt-stricken country will be able to push through economic reforms and stay in the euro.

Standard and Poor’s yesterday raised Greece’s credit rating to B-, the highest since June 2011, after a bond buyback helped reduce its debt burden. Greek Finance Minister Yannis Stournaras said today the upgrade was a “great success” for his country....