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Jean-Claude Trichet reiterates that the ECB wouldn't accept defaulted Greek bonds as collateral,...

Jul. 18, 2011 7:54 AM ETFXE, ERO-OLD, EU-OLD, URR, DRR, ULE, EUOBy: Yigal Grayeff, SA News Editor
Jean-Claude Trichet reiterates that the ECB wouldn't accept defaulted Greek bonds as collateral, potentially cutting off funding for Greek banks. In contrast, Angela Merkel again insists on private sector involvement in any new bailout, which would probably cause a "selective default."

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