UPDATE: Germany΄s Bundesbank said on Monday (April 2/2012) that it will continue to accept all euro zone sovereign bonds as collateral in its lending operations, rejecting media reports that it had stopped taking debt from EU/IMF programme countries.
On March 30, German daily Frankfurter Allgemeine Zeitung reported, that Germany’s Bundesbank is the first of the 17 euro-area central banks to refuse to accept as collateral bank bonds guaranteed by member states receiving aid from the European Union and the International Monetary Fund ( Frankfurter Allgemeine Zeitung).
The Bundesbank won’t lend to banks against bank debt guaranteed by Greece, Ireland and Portugal from May, the newspaper said, citing unidentified officials. The Frankfurt- based central bank currently has less than 500 million euros ($667 million) of those bonds on its balance sheet, FAZ reported. (FAZ in German via Bloomberg)
