ECB says private bond purchases are finished

, Comments 0 comments

The European Central Bank said on Wednesday that it had completed its announced purchases of covered bonds, a programme aimed at ensuring financing for private companies via eurozone banks.

The purchase target of 60 billion euros (73 billion dollars) has been "fully implemented," an ECB statement said.

Central banks in the eurozone, which are ECB members, will hold the bonds until maturity, rather than sell them on secondary markets, it added.

"The aim of the programme has been to support a specific financial market segment that is important for the funding banks and that had been particularly affected by the financial crisis," the ECB said.

In underpinning a key market for business financing, the ECB has become a key player in a field normally dominated by private commercial banks.

© 2010 AFP

0 Comments To This Article