ECB announces 750 bln Euro pandemic emergency purchase program

Greece’s participation in QE neither accidental nor effortless, government sources say


“Extraordinary times require extraordinary action. There are no limits to our commitment to the Euro. We are determined to use the full potential of our tools, within our mandate,” European Central Bank (ECB) President Christine Lagarde posted on Twitter.

The ECB Governing Council decided to launch a new temporary asset purchase program of private and public sector securities to counter the serious risks to the monetary policy transmission mechanism and the outlook for the Euro area posed by the outbreak and escalating diffusion of the coronavirus, COVID-19.

This new Pandemic Emergency Purchase Program (PEPP) will have an overall envelope of 750 billion Euros. Purchases will be conducted until the end of 2020 and will include all the asset categories eligible under the existing asset purchase program.

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Greece’s participation in the European Central Bank’s (ECB) quantitative easing program, which reduces the country’s borrowing costs and secures significant liquidity for the real economy, is a huge success that was neither accidental nor effortless, government sources said on Thursday.

The same sources added that it was “a huge personal success of Prime Minister Kyriakos Mitsotakis” after he spoke on the phone with ECB chief Christine Lagarde.

“This is something that SYRIZA and its leader Alexis Tsipras had not achieved for 4.5 years”, they added.

Source: amna