WEEKLY COMMENT 2-10-2014
By Barry Edwards
The ECB Asset Purchase Programme
The European Central Bank (ECB) announced details of the Asset-Backed Securities Purchase Programme (ABSPP) and its Covered Bond Purchase Programme (CBPP3) which are the latest attempts to boost lending in the commercial economy, mainly for SME’s. This is in addition to the recent Targeted Long-Term Refinancing Operations (TLTRO’s) allowing banks to borrow from the ECB at low rates for two years; the funds must be used for commercial lending or the money has to be repaid.