9 Jun 2013
ECB denies report OMT program is limited
FXstreet.com (Barcelona) - The European Central Bank has categorically denied reports over the weekend carried by the Frankfurter Allgemeine Sonntagszeitung newspaper, in which central bank sources were cited as saying the ECB had set a limit of €524 billion on any potential intervention to assist EU countries in need, under the Outright Monetary Transactions scheme.
According to Reuters, citing a spokesman for the bank, "there is no limit to the European Central Bank's (ECB) bond-buying programme," refusing to accept the information from the German newspaper as truthful. The same spokesman for the ECB said the information was "incorrect". The information comes ahead of a court hearing on the scheme brought by German private citizens.
The amount rumored, €524 billion, is short of any conceivable expectation, as pointed out by Geoffrey Smith from Dow Jones, who said the sum "is merely the combined amount of outstanding debt issued by Spain, Italy, Ireland and Portugal with a remaining maturity of between 1 and 3 years, the segment of the bond market that the program would be aimed at, if ever activated.
According to Reuters, citing a spokesman for the bank, "there is no limit to the European Central Bank's (ECB) bond-buying programme," refusing to accept the information from the German newspaper as truthful. The same spokesman for the ECB said the information was "incorrect". The information comes ahead of a court hearing on the scheme brought by German private citizens.
The amount rumored, €524 billion, is short of any conceivable expectation, as pointed out by Geoffrey Smith from Dow Jones, who said the sum "is merely the combined amount of outstanding debt issued by Spain, Italy, Ireland and Portugal with a remaining maturity of between 1 and 3 years, the segment of the bond market that the program would be aimed at, if ever activated.