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How the ECB can tackle fragmentation in the eurozone

Financial Times LogoFinancial Times6d ago

How the ECB can tackle fragmentation in the eurozone

Quick Summary

There is the Outright Monetary Transactions programme to buy government bonds of crisis-hit countries in unlimited quantities.

This would, of course, not remove the credit risk from government bonds, which ultimately would depend on the soundness of the member states’ fiscal policies.

In removing ratings from government bonds, the ECB would no longer be a source of potential liquidity risks to its domestic government bond markets.


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Article Details

Author / Journalist: Lorenzo Bini Smaghi

Category: MarketsFinanceInvesting

Topics: Ratings Bank Central Government Fragmentation Bonds Financial Programme Markets Eligibility

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2022-06-24, 04:00:16

News Timezone: GMT -5:00

News Source URL: ft.com

Language: English

Reading Time: 5 minutes read

Article Length: 818 words

Coverage Area: United States

Availability: Desktop Web, Mobile Web

News ID: 7197

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About Financial Times

Financial Times Logo

Main Topics: MarketsFinanceInvesting

Official Website: ft.com

Update Frequency: 10 posts per day

Year Established: 1888

Headquarters: United States

News Last Updated: 9h ago

Coverage Areas: United States

Ownership: Independent Company

Publication Timezone: GMT -5:00

News Language: English

RSS Feed: Available (XML)

Website Security: Secure (HTTPS)

Publisher ID: #3

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