Back
22 Jan 2015
Draghi: 20 percent additional asset purchases will be subject to a regime of risk sharing.
FXStreet (London) - In his press conference following the European Central Bank rate decision, Mario Draghi, the ECB president, has announced that combined monthly purchases will be EUR60 billion, to be carried out at least until the end of September 2016 – beginning in March.
Purchases to be based on the Eurozone National Central Banks’ shares in the ECB’s capital key.
Additional eligibility criteria will be applied in the case of countries under an EU/IMF adjustment programme meaning an exclusion of Greece and Cyprus.
The ECB governing council retains control over all features of programme and the ECB will coordinate the purchases to “safeguard singleness of monetary policy”. In addition, the governing council decided that purchases of securities of European institutions (12 percent of additional purchases) will be subject to loss sharing, while rest of the NCBs’ additional asset purchases will not be subject to loss sharing.
The ECB will hold 8 percent of the additional asset purchases, meaning that 20 percent of the additional asset purchases will be subject to a regime of risk sharing.
Purchases to be based on the Eurozone National Central Banks’ shares in the ECB’s capital key.
Additional eligibility criteria will be applied in the case of countries under an EU/IMF adjustment programme meaning an exclusion of Greece and Cyprus.
The ECB governing council retains control over all features of programme and the ECB will coordinate the purchases to “safeguard singleness of monetary policy”. In addition, the governing council decided that purchases of securities of European institutions (12 percent of additional purchases) will be subject to loss sharing, while rest of the NCBs’ additional asset purchases will not be subject to loss sharing.
The ECB will hold 8 percent of the additional asset purchases, meaning that 20 percent of the additional asset purchases will be subject to a regime of risk sharing.