Late Wednesday the ECB announced that as of Feb. 11 it will not accept Greek bonds as collateral.

The financing of Greek banks will continue as normal, but through the ELA mechanism, namely, via the Bank of Greece, and with ECB’s approval.

Frankfurt estimates that following the current situation an upcoming evaluation by international creditors may not be completed.

This decision was originally to come into force on March 1, roughly after a two month-extension of the existing memorandum.
The sudden ECB decision is considered a “resounding message” to the Greek government to accelerate the tabling of its in order to discuss and agree on a financial aid program. It also qualifies as pressure to the euro working group to agree with Athens over a new scheme.

According to an official ECB announcement “Suspension is in line with existing Eurosystem rules, since it is currently not possible to assume a successful conclusion of the programme review.”

However, as CNBC reports, the decision is expected to put more pressure on the new Greek government to come to a deal on the country’s bailout program.

Finally, the report notes that Global X Funds’ Greek ETF fell more than 10 percent on the news.