13-03-15

ECB says it is well on track to reaching its intended bond buying goal

cep financial market expert Van Roosebeke: German Bundesbank will make losses due to the program. However, sharing of profits and losses between the central banks of the eurozone has not been finally settled yet.

ECB wants to purchase 60 billion euros in bonds per month

The European Central Bank has bought 9.8 billion euros worth of assets in the first three days of launching its new bond purchasing program, ECB Executive Board member Benoit Coeure said. The central bank is well on track to reaching the intended total of 60 billion euros in bonds in March, Coeure explained. Moreover, the ECB did not have problems in finding bonds to buy, he said. cep financial market expert Bert Van Roosebeke noted, though, that the national central banks of the Eurosystem are allowed to buy only domestic government bonds under the ECB program. “This means for the German Bundesbank that it will soon only be able to purchase bonds with negative yields,” Van Roosebeke pointed out. “The program will, thus, financially burden the Bundesbank while other central banks will make profits. The sharing of profits and losses between the central banks of the eurozone, however, has not been finally settled yet.”