The ECB launches a € 750 billion purchase program for the coronavirus

The European Central Bank (ECB) announced by surprise this evening a 750,000 million euro public and private bond purchase program to counteract the “serious risks” posed by the crisis of coronavirus for its monetary policy.

The ECB indicated in a statement that the Pandemic Emergency Purchase Program (PEPP) will make acquisitions of “all eligible asset categories” under the current Asset Purchase Program (PPA) until the end of the year.

In addition, acquisitions will be “flexible” and will not be distributed regularly over time and space. “This allows fluctuations in the distribution of the flow of purchases over time, in the types of assets and between jurisdictions,” the note said.

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