The scheme, created at the height of the debt crisis, would allow the ECB to buy unlimited bonds of a particular country. Some representatives, both in Brussels and in the ECB, support unblocking it, BTA relays.
The DPT programme, which has never been used, is designed to help individual countries overcome “traditional debt imbalances or banking crises” through economic regulation programmes and three-year financing facilities in markets.
The turmoil we face now is not like those for which the DPT was created, one of the sources said, speaking on condition of anonymity.
Not suitable under the current conditions, he added.
The ECB prefers to focus on the temporary Pandemic Emergency Purchasing Programme (PEPP), worth 750 billion euros ($823 billion), presented after an unscheduled meeting last week.
According to the individual measures, this programme is more powerful than the DPT, and its status was supported earlier today when the ECB abolished a key limit on the bonds it buys, thus being able to buy larger amounts of debt from each euro area country.
ECB will not buy out bonds under a programme created during the debt crisis
The European Central Bank (ECB) is not planning to unblock its extraordinary bond buyout programme, known as Direct Money Transactions (DPT), as the institution says the scheme is not suitable for combating the coronavirus crisis, sources familiar with the opinion said today the bank and quoted by Reuters.tags: