"Portugal has made remarkable progress, but remain vulnerabilities," said Mario Draghi, the president of the European Central Bank (ECB), in the press conference that followed the meeting of the monetary policy this Thursday.
The compliment was followed by a question about whether a cut rating to ‘junk financial’ long-term debt of the Portuguese by DBRS, this Friday, would entail the ‘expulsion’ of Portugal of the programs of the stimuli. The president of the ECB said the obvious: if there is a downgrading of Portuguese debt by the agency of the canadian, the obligations of the Portuguese cease to be eligible for the program of purchase of debt on the secondary market and as collateral for the recourse to funding by banks. “If there is a downgrading, debt instruments issued or guaranteed by the Republic of Portugal will become ineligible as collateral for monetary policy operations or for acquisitions within the Program of Purchases of the Public Sector,” he said.
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