ECB can accept securities backed by bad loans as collateral, Draghi says

February 15, 2016 3:10 PM

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FRANKFURT Feb 15 The European Central Bank can accept securities backed by non-performing loans (NPL) as collateral from banks, provided that they have a credit rating above a certain threshold, the central bank's president said on Monday.

Mario Draghi dismissed the prospect, raised by the Italian Treasury, that the ECB could buy asset-backed securities (ABS) based on bad loans as part of its quantitative easing programme.

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