Comment on ECB's Coeure: Bond buys will come with conditions

ECB's Coeure: Bond buys will come with conditions

ECB's Coeure: Bond buys will come with conditions Associated Press Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Updated 4:56 a.m., Friday, August 31, 2012 JOUY-EN-JOSAS, France (AP) — Countries should have to make formal requests and agree to strict conditions before the European Central Bank buys their bonds to drive down their borrowing costs, a top bank official said Friday. The ECB is expected to unveil next week details of its plans to purchase debt on the open market to push down the interest rates eurozone governments pay to borrow money. Demanding that a government formally ask for help before enjoying the support of the ECB is seen as crucial to making the plan work — the ECB ran into trouble enforcing conditions with its earlier bond purchase program aimed at helping lower rates for Spain and Italy. Another potential argument against bond purchases is that they might cause consumer goods' prices to rise by increasing the supply of money in the economy.

 

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