The European Central Bank (ECB) announced today that last week did not buy the debt of countries in the euro area, which spent seven consecutive weeks without it, although the markets penalize some countries like Spain.
The ECB said the amount of sovereign debt of countries in the eurozone that the ECB is now of 214,000 million euros.
The ECB will withdraw this amount on Monday at an auction in which banks offer an interest rate of 1% maximum to prevent rising inflation.
The monetary authority has stopped the purchase of sovereign debt of countries with financial difficulties after injecting more than one billion euros to three years in two operations, the first in late December and the second in late February.
The risk premium of Spain, which measures the spread between ten-year Spanish bond and its German counterpart, fell in early afternoon trading below 420 basis points despite the downgrade of Spanish sovereign debt that the agency did last night measurement of Standard & Poor’s.
In its annual report on European Integration and Financial Stability published yesterday, the ECB noted that “the most intense phases of the sovereign debt crisis, may have been an overestimation of the risk of several countries in the euro area, which triggered their returns. ”
ECB President, Mario Draghi, rejected midweek intervene again in the secondary market to buy Spanish sovereign debt.
However, Draghi described as “extraordinary” efforts being made by the Spanish government to undertake structural adjustments and reforms.
Category: Mutual Funds