ECB to buy corporate bonds: Will government financing be the next step?

Last Monday, the European Central Bank initiated its covered bank bonds buying programme. But it wasn’t until the major international news agencies started reporting information early on Tuesday from ECB unidentified sources about its plans for corporate bond purchases too, and only then the central bank policies had an immediate and conspicuous effect on real […]

ECB reaches the boundaries of its mandate to revive the entirety of Eurozone

Mario Draghi proved last week that the European Central Bank is the only Eurozone institution catering for the entire single money area and not only for part of it. The announcement last week of the details of the new asset-backed securities purchases and covered bond acquisitions programmes, which include Greece and Cyprus under conditions, proves […]

ECB again to subsidize euro area banks with more than one trillion euro

The Governing Council of European Central Bank decided last week to hand out to Eurozone banks additional liquidity of up to €1 trillion at almost zero cost, under its new targeted longer-term refinancing operations (TLTROs). At the same time it also decided to “intensify preparatory work related to outright purchases in the Asset Backed Securities […]

ECB bets billions on Eurozone’s economic recovery

Last Wednesday, one day ahead of the regular monthly meeting of European Central Bank’s Governing Council, Eurostat, the EU statistical service, published a Press release on Eurozone’s near zero economic growth. The relevant passage of that text went like this, “Seasonally adjusted GDP rose by 0.2% in the euro area (EA18) and by 0.3% in […]

ECB: A revolutionary idea to revitalize the European economy with cheap loans to SMEs

IMF and World Bank’s spring meetings in Washington DC last weekend gave the opportunity to the European Central Bank (ECB), supported by the Bank of England (BoE), to launch a new monetary policy ‘offensive’ in order to revive the stagnant European economy. Mario Draghi, President of ECB clearly stated that the Eurozone’s central bank will […]

The ECB proposes a swift solution for SMEs’ financing

The European Central Bank is deeply worried about the ability of Eurozone’s SMEs to access bank financing at a reasonable cost and under competitive terms. The present business loan stalemate has already bitten into the growth prospects of the euro area, mirrored in the dangerous fall of inflation rate towards the deflation zone and the […]