ECB drops cap on debt purchases to boost virus response

Hellenic Shipping News | Mar 27, 2020 at 12:00 AM
  • The European Central Bank has dropped a cap on how many bonds it can buy from any single euro zone country, clearing the way for potentially unlimited money-printing in response to the coronavirus outbreak.
  • “In a nutshell, the decision removes virtually all constraints on asset purchases, in a further boost to the credibility of the ECB’s commitment.
  • German critics, who still have a case pending at the German Constitutional Court, have repeatedly taken the ECB to court over bond buying, arguing that the ECB has exceeded its powers while buying over 2.6 trillion euros ($2.85 trillion) of debt since 2015.