The European Central Bank announced multiple collateral easing measures to tackle the economic impact of the coronavirus on April 7.
The ECB has expanded the additional credit claims framework to ensure a wider range of eligible loans, including loans with lower credit quality, foreign-currency loans and loans to other debts not accepted in the ECB's general framework. This action complements measures taken by the ECB to extend liquidity to banks such as the additional longer-term refinancing operations and the Pandemic Emergency Purchase Programme.
The central bank also increased its risk tolerance level by reducing collateral valuation of haircuts by 20%. The ECB also decreased the non-uniform minimum size threshold for domestic credit claims to 0 from €25,000 and increased the share of maximum unsecured debt in a credit agency's pool to 10% from 2.5%.
The ECB also waived the minimum credit quality requirement for Greek government bonds to be used as collateral.
The ECB said the measures are temporary and that it will reassess them before the end of 2020.
The ECB said it may have to spend roughly €1.5 trillion in 2020 to tackle the crisis, Reuters reported, citing officials.