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ECB's Constancio gives more details on ABS/covered bonds purchase plan

FXStreet (Łódź) - Speaking in Frankfurt ECB Vice President Vitor Constancio commented on the central bank's ABS and covered bonds purchase plan, which is to cover 1 trillion euros.

“The overall purchasable amount of ABSs and covered bonds is sufficient to ensure that asset purchases can be carried out on a large scale,” the ECB policymaker assured. “We are, of course, aware that the amounts that we will be able to buy will be lower than the theoretical amount.”

Constancio stated that around 400 billion euros of ABS stock and about 600 billion euros of covered bonds will be eligible to be bought by the ECB.
"The majority of the combined stock of ABSs and covered bonds is not held by banks and our purchases are not aimed at buying these securities mostly from banks," he added.

The purchases should help increase the size of the ECB's balance sheet, allowing the central bank to start easing its monetary policy.

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