ECB could once again accept Greek bonds as collateral - BBH

Research Team at BBH, suggests that with Greece having passed the first review of its third assistance program, the ECB could once again accept Greek bonds as collateral from Greek banks. 

Key Quotes

“This would be consistent with ECB's rules.  However, not reacting immediately would also be consistent with bureaucratic inertia.  Greek bonds (and bank shares) are vulnerable to a delay.  If Draghi does not volunteer it, perhaps a reporter will ask about including Greek bonds in the ECB's asset purchases.  The proximity of the technical cap (33%) of a country's outstanding debt may offer a way skirt the issue, for the time being.  Greece is gradually paying down the debt it owes the ECB, which will keep the issue near the surface.”