The ECB mentioned that it will accept the 45-billion euros of government bonds held by Greek banks as collateral to the EU-IMF 110 billion euros aid agreed upon to Greece yesterday. Providing Greece with a bailout was important to salvage the debt-laden economy from having further credit rating downgrade which would in turn make Greek bonds ineligible as collateral for ECB loans. Greece was downgraded by S&P and Moody's in April but the ECB lowered its acceptance to assets to BBB-, the lowest investment rating, to help Greece and other indebted EU countries.

In return for the three-year package loan, the Greek government promised to reduce another 30 billion euros from the deficit through wage cuts and pension freeze to slash the deficit to 3%, the EU ceiling, from the current 13.6% of GDP by 2014.