The eurozone economy is likely to shrink between 8% and 12% this year as it struggles to overcome the impact of the coronavirus pandemic, European Central Bank President Christine Lagarde said on Wednesday.
The European Central Bank (ECB) is drafting contingency plans to carry out its multi-trillion bond-buying program without the Bundesbank in case Germany's top court forces the main participant in the scheme to quit, four sources told Reuters.
Greek banks will be able to face challenges to profitability from the coronavirus crisis with the help of increased funding from the European Central Bank, credit rating agency Moody's said in a credit outlook report on Thursday.
The European Commission will ask eurozone finance ministers to approve the disbursement of 748 million euros in SMP and ANFA profits that European central banks made when buying Greek sovereign bonds, according to the sixth enhanced surveillance report by the European Union's executive arm.
The coronavirus-hit eurozone economy probably will not return to its pre-pandemic levels until next year at the earliest, the European Central Bank's chief economist told El Pais newspaper, adding that the ECB was prepared to tweak its tools if needed.
The European Central Bank bought a record 44 billion euros ($47.64 billion) worth of bonds across its stimulus programs last week, but still failed to rein in borrowing costs for Italy and other indebted countries, ECB data showed on Monday.