The ECB bought corporate bonds at 92 billion euros

The purchase is made in the framework of the program of quantitative easing

The European Central Bank has announced that it has acquired 950 securities issued by the approximately 200 companies in the framework of the program of buying corporate bonds. The program was launched a year ago as one of unprecedented measures to support the Eurozone economy.

While in the framework of the program of quantitative easing involving the purchase of securities on 2.3 trillion Euro, the ECB bought corporate bonds at 92 billion euros (102,4 billion US dollars).

The purpose of QE is to lower the cost of borrowing in the Euro zone to support lending and economic growth. The Bank plans to continue the program until at least the end of December.

Newly published Central Bank data allow us to know some details of the programs that previously were almost unknown.

In the report the ECB said that the yield of 12% of bought corporate bonds ranges from zero to -0.4%. About 30% of the securities acquired from French companies, 25% German and 11% Italian. More than half of the bonds have a rating of “BBB”.

The decision to purchase corporate debt approve not all. German lawyer Markus Kerber challenged it in the Supreme court of Germany, arguing that it puts at a disadvantage small companies do not have access to the bond market.

On Wednesday, the ECB contested the complaint, stating that the purchase has facilitated the bond market and, therefore, improved Bank lending to small companies.

“When large corporations increase funding by issuing bonds, but not at the expense of Bank lending, banks have more opportunities for lending to small firms”, – said in a statement the ECB.

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