The European Central Bank is suspending requirements for credit ratings on government-backed assets from Greece for use in the central bank's liquidity operations. The change, a significant about-face for the ECB, is an effort to ensure that plans to help Greece through its fiscal woes will not be undermined by other issues. ECB President Jean-Claude Trichet said one country would never be favoured. "It is very unfortunate for them," said Erik Nielsen, European economist at Goldman Sachs. "The way they will defend it is that Greece is now de facto underwritten by other member states, so it is justified."
Published in Brief: