ECB waiver to end on August 21, banks lose cheap cash

European Central Bank chief Mario Draghi on Friday signed the ECB's expected decision to revoke its waiver for Greek bonds, ending local banks' access to cheap funding.

The decision will come into effect on August 21, a day after the country officially completes its third bailout program.

The waiver allowed Greek debt to be accepted as collateral for regular auctions of ECB cash, despite the junk rating of the country's bonds.

Since Greece will no longer be in an adjustment program, the criteria for accepting the waiver will no longer apply.

"From that date (August 21), the conditions for the temporary suspension of the Eurosystem's credit quality thresholds in respect of marketable debt instruments issued or fully guaranteed by the Hellenic Republic... will no longer be fulfilled," the ECB announced in a press release.

The decision had...

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