Economics
ECB Encouraged to Create New Green Bank-Lending Program
- Positive Money: refinancing operations could be a ‘key lever’
- Monetary policy stance wouldn’t be affected by priority shift
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The European Central Bank should introduce a green bank-lending program a part of its strategy to rekindle the economy following the Covid-19 pandemic, according to advocacy group Positive Money Europe.
Under the proposal published Wednesday, banks funding environmentally friendly projects would get more favorable conditions when they borrow from the ECB. The central bank’s overall monetary-policy stance wouldn’t be affected.