ECB buys 14.29 bn euros of government bonds

22nd August 2011, Comments 0 comments

The European Central Bank (ECB) said Monday it bought 14.29 billion euros ($20.58 billion) of government bonds last week, trying to ease a eurozone debt crisis that threatens Italy and Spain.

The latest purchases brought to 110.5 billion euros the total amount the ECB has so far devoted to its Securities Markets Programme.

The ECB, as usual, did not specify which government bonds it had bought.

A week earlier, the ECB purchased a record 22 billion euros worth of bonds, easing pressure on Italy and Spain as the move forced down their cost of borrowing.

The decision does not sit well with all members of the ECB governing council however, and the German central bank said Monday that buying sovereign debt issued by troubled eurozone member countries weakened their motivation to adopt "appropriate financial policies."

© 2011 AFP

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