Factbox: ECB and euro zone c.banks role in Greek debt deal

FRANKFURT (Reuters) - Below is a list of the various contributions the European Central Bank and the national euro zone central banks will make to the deal to cut Greek debt, reached in the early hours of Tuesday.

FORGOING BOND BUY PROFITS

The ECB will hand over the 12 to 15 billion euros it is set to make from the 50 billion euros ($66 billion) worth of Greek bonds it bought under a controversial emergency purchase program it set up in May 2010.

In the three years the Greek bailout package runs for, the amount will add up to roughly 5 billion euros. Of that, countries whose own borrowing costs are above the level of the Greek bailout loans (3-month Euribor plus 150 basis points) can use their cut of the ECB bond profits to ensure they don't make a loss on the rescue loans they give to Greece.

The ECB will use its normal practice of passing its annual profits to the 17 euro member central banks as a way of handing the money back. The money will come in yearly installments rather than one lump sum. The central banks will then pass it to governments who can in turn pass it to Athens.

Whilst it sees the ECB forgo profits it cements the fact that, unlike private Greek bond holders, it will not suffer losses on its Greek bonds. It has taken this stance to uphold the principle enshrined in its founding treaty, that it will not engage in monetary financing - using newly created money to bail out governments.

However, the moves effectively gives the ECB seniority over other investors and raises the question whether markets will now begin to shun Italian, Spanish, Irish and Portuguese bonds, debt the ECB has also bought.

FORGOING PROFITS ON BONDS HELD IN INVESTMENT PORTFOLIOS

The ECB and the euro zone central banks that have additional Greek bonds in their so-called 'investment portfolios' will also pass on the expected profits on those bonds. The one key difference is that the money will be made immediately available and in one lump sum.

It is not known exactly how much the central banks own between them in their investment portfolios but estimates are around 12 billion euros. As the bonds are unlikely to have been bought at such a steep discount as those bought as part of the emergency purchase program, the amount gleaned from such a move will not be enormous. A statement by the Eurogroup said the move would lower Greece's financing needs over the next three years by 1.8 billion euros.

The decision rules out the option of subjecting the investment portfolio bonds to the same 53.5 percent cut in value as those owned by commercial banks and Greece's other private-sector creditors.

COLLATERAL ACCEPTANCE

The ECB will keep accepting Greek government bonds from banks as collateral for central bank funding throughout the period they are classified in default, when the bond swap deal with Greece's private sector creditors takes place. In return euro zone governments will transfer a 35-billion-euro insurance deposit to the ECB while the process runs its course. ($1 = 0.7538 euros)

(Reporting by Marc Jones; Editing by Ruth Pitchford)