ECB not discussing reviving bond purchases

Date: Tuesday 29 May 2012

European Central Bank (ECB) member Ewald Nowotny has denied that the monetary authority is considering the revival of its sovereign debt purchases.

As speculation abounds on how Spain plans to fund its €19bn bailout of the financial institution Bankia, Nowotny stated that the ECB is not discussing the possibility of once again buying up government bonds, according to reports.

Spanish government officials indicate that there is a clear preference to tap credit markets to get the funds for the recapitalisation, rather than simply issuing government bonds directly to Bankia.

JM

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