Economics
ECB Overbuys Italian Debt to Funnel Virus Aid Where Needed
- Purchases amounted to 37.4 billion euros as of end of May
- Share of French bonds undershot capital key significantly
The European Central Bank (ECB) skyscraper headquarters tower above commercial and residential property in Frankfurt, Germany.
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
The European Central Bank skewed asset purchases under its new emergency program toward Italy, underscoring the institution’s crisis-fighting role in the face of the coronavirus outbreak.
The ECB bought 37.4 billion euros ($42 billion) of Italian debt since the plan started in late March, it said on Tuesday when issuing details for the first time. That means it bought a greater share of the country’s bonds than the size of Italy’s economy and population -- general guidelines for the allocation of purchases -- would have implied.