ECB credit easing policies will be sizeable: Praet
By Philip Blenkinsop
BRUSSELS Oct 3 (Reuters) - The European Central Bank's programs of loans and debt purchases to ease the flow of credit will be sizeable, although giving a precise figure is difficult, European Central Bank Executive Board member Peter Praet said on Friday.
The ECB on Thursday laid out plans to buy packages of debt known as asset-backed securities as well as covered bonds, which are secured on solid assets, such as property.
That comes on top of ultra-low interest rates and up to 400 million euros ($501 million) of cheap four-year loans, known as
a Targeted Long-Term Refinancing Operation, or TLTROs. A second tranche of TLTROs in December is expected to attract better
demand than the first in September.
"The ECB Governing Council has clearly communicated that its credit-easing policy will have a sizeable impact on its balance sheet," Praet said at a conference at ULB university in Brussels.
"Sizeable volumes to address credit impairment are important, as indicated by the universe of purchasable assets," he said.
The scheme will start in mid-October for covered bonds. Purchases of asset-backed securities will follow before the end of the year. Continued...