Germany Berenberg Bank senior economist Christian Schulz, 22, said that despite the European Central Bank last week to buy euro zone debt crisis of the country’s debt, but that does not mean that the ECB will soon end This response to the debt crisis in Europe operation.
European Central Bank has released information last week did not buy the debt crisis of the country’s debt, which is the European Central Bank is the first time since August last year, a single week to suspend the purchase of government bonds.
Schultz, 22, told Xinhua in an exclusive interview that the ECB bond purchases aimed at maintaining the stability of the bond market, since last December, the European debt crisis countries yields steadily to drop, the European Central Bank to suspend the purchase of government bonds is reasonable.
He pointed out that compared with the issuing longer-term low-interest loans to eurozone banks to buy treasury bonds in the secondary market is the means of the European Central Bank only directly involved in sovereign debt markets. He said that the European Central Bank to stop the end of March last year after the purchase of government bonds, the yields of the debt crisis of the country immediately rising fast, it is expected that the ECB will not stop and the bond purchase program, to preserve the intervention again once the market subject to significant volatility means.
Shultz said that the current bond markets such as the operation of the rebound in investor confidence, mainly due to the European Central Bank in December last year, the first three years of refinancing operations and the EU summit countries agreed adding “financial contract”.
last December, the ECB carried out the first three-year period refinancing operations, a total of more than 500 eurozone banks issued more than 489 billion euros ($ 647.6 billion) three-year low-interest loans to alleviate the situation of the European financial system due to the sovereign debt crisis and the credit crunch.
financing the operation of the bidding activity for the three-year period, the second round of the European Central Bank will be at the end of this month, Schultz said, on the one hand, the ECB has recently reduced the collateral conditions of euro area banks for loans, which means more banks will be conditionally added to the project, will play a positive role in pushing up the total loan applications; the other hand, the market confidence to rebound, bank financing has increased, some euro area banks may no longer need to financing from the European Central Bank. Consider both positive and negative factors, total second refinancing is expected to be flat for the first time.
Schultz said that the EU Treaty prohibits the ECB state-funded, which greatly limits the ability of the European Central Bank direct intervention in the debt crisis in Europe. On the current European Central Bank to participate in the possibility of Greek debt write-downs, Schultz said, the ECB can be held by the Greek bond yields in accordance with the proportion of distributed to the euro zone countries, then by all countries to decide whether to contribute to the write-down of the Greek debt , thus avoiding the controversy of the legal level.
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