Policy reactions to the Eurozone crisis
Greek borrowing costs fell sharply on Thursday following the European Central Bank's (ECB) decision to include Greek government bonds in an emergency assets purchases program.
The ECB triggered new bond purchases worth 750 billion euros ($816.90 billion) at an emergency meeting late on Wednesday to stop a pandemic-induced financial rout from shredding the euro zone's economy.
"You…. start your term with … a system in need of reassurance that Outright Monetary Transactions (OMT) are ready to be used, if need be." This is what we said in July 2019 when we wrote the memo to the incoming ECB president.* What we did not know back then is just how quickly she would have to contemplate the need.
The European Stability Mechanism (ESM) on Thursday announced that the Board of Directors of the European Financial Stability Facility (EFSF) decided to reduce to zero the step-up margin due from Greece for the period between 17 June 2019 and 31 December 2019, as part of the medium-term debt relief measures agreed for the country.