The European Central Bank is likely to continue purchasing junk-rated Greek sovereign debt even after the pandemic crisis has passed, according to Governing Council member and Greek central bank chief Yannis Stournara
“This is not a question of Greece’s ability to service debt, but a question of even transmission of monetary policy,” Stournaras told Politico in an interview published Monday. He added it was his “expectation” that the ECB’s older asset-purchase program, known as APP, would take over some of the flexibility of the emergency program launched in Mar
A move to include Greek debt in the ECB’s post-crisis monetary policy would mark a significant step for the central bank, which excluded junk-rated bonds from its purchase programs prior to the pandemic. Its decision to allow Greek bonds as part of its emergency bond-buying program marked an acknowledgment at the time of the broad scope of the coronavirus shock. (BBG)