ECB plans 500 billion euros bond purchase program
Plans to launch an asset-backed securities (ABS) and covered bond purchase program worth up to 500 billion euros are on the table at Thursday’s European Central Bank policy meeting, people familiar with the discussions say.
ECB President Mario Draghi will likely announce such a program at his news conference unless it comes up against strong opposition at the Governing Council’s policy meeting.
The program would have a duration of three years and comprise both ABS and covered bond purchases. The ECB could begin buying the assets this year, the people familiar with the discussions told Reuters.
The ECB declined to comment.
However, bankers and regulators have cast doubt on reviving Europe’s repackaged debt market to fund economic recovery, saying it will take years and hinge on a re-invention of the sector rather than quick regulatory tweaks.
Source: reuters
