22 January 2015

Mario Draghi Announces Quantitative Easing

The European Central Bank is launching an expanded €1.1 trillion private and public bond-buying program. The so-called “quantitative easing” will start in March and will last “at least” until September 2016. The only Eurozone country excluded for now is Greece, which will need to meet additional criteria. In a concession to Germany, Draghi stated that national central banks would bear most of the risk of an eventual government default, with only 20% of new bond purchases subject to “risk-sharing.” ECB will purchase a maximum 25% of each debt issue, with a maturity date ranging between two and 30 years.

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