The International Monetary Fund Wednesday welcomed the European Central Bank (ECB)'s decision to drop collateral requirements for Greek debts.

"We very much welcome the European Central Bank's announcement, in the context of Greece's strong adjustment program, that it has decided to suspend the application of the minimum credit rating threshold in the collateral eligibility requirements for the purposes of the Euro system's credit operations in the case of marketable debt instruments issued or guaranteed by the Greek government," said Dominique Strauss-Kahn, Managing Director of the International Monetary Fund (IMF) in a statement.

"This decision by the ECB will provide important support to the program by helping to maintain financial stability," he added.

In a move to provide further help to debt-ridden Greece, the ECB announced on Monday that it would accept the country's debt as collateral for loans regardless of the country's credit rating.

The move came one day after Greece agreed to tough austerity measures in return for a 110-billion-euro bailout package which has been negotiated with the European Commission, the ECB, and the International Monetary Fund.

The ECB said that its positive assessment of the rescue package and the strong commitment of the Greek government to fully implement the austerity program are the basis for its decision to suspend the minimum credit rating threshold.