Demonstrators, one of them wearing a Pulcinella face mask, center, face police as the ECB governing council meets in Naples, Italy, Thursday, Oct. 2, 2014. (AP Photo/Salvatore Laporta)
Your feedback is important to us!
We invite all our readers to share with us their views and comments about this article.
Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.
Alert: If you are facing problems with posting comments, please note that you must verify your email with Disqus prior to posting a comment. follow this link to make sure your account meets the requirements. (http://bit.ly/vDisqus)
The European Central Bank will buy bundles of loans and other forms of secured debt from mid-month in a bid to kickstart a listless eurozone economy, despite misgivings in Germany and elsewhere.After cutting interest rates last month to what the bank said was "the lower bound," the ECB left its main refinancing rate at 0.05 percent Thursday.President Mario Draghi said the ECB would begin to buy covered bonds, a form of secured debt, from banks in mid-October and purchase asset-backed securities (ABS) – bundled loans – at some point in the fourth quarter of the year.Draghi said the ECB council was unanimous that it would take further steps if it needed to – commonly accepted as code for QE. But that ultimate move remains a difficult one for the ECB to take, given stiff internal opposition.Asset-backed securities are created by banks pooling mortgages and corporate, auto or credit card loans and selling them to insurers, pension funds or now the ECB.
FOLLOW THIS ARTICLE