FRANKFURT (Reuters) – The European Central Bank on Thursday outlined a new program of bond purchases from eurozone member states that have seen their borrowing costs skyrocket through no fault of their own, provided that these beneficiary countries pursue a sound economic policy.
As part of this tool, the Transmission Protection Instrument (TPI), the ECB will buy “public sector securities (…) whose remaining maturity is between one and ten years” and will even consider buying private sector if necessary, the ECB said.
“Buying would halt either on a sustained improvement in transmission or based on an assessment that continued strains are driven by the country’s fundamentals,” the institution added.
(Report Francesco Canepa and Balazs Koranyi; Laetitia Volga for the French version, edited by Sophie Louet)
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