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European Central Bank president Mario Draghi is set to reveal details of an ambitious plan to buy hundreds of billions of euros of repackaged debt in order to kick-start bank lending. The ECB's monthly press conference, held in Naples, Italy, takes place against a backdrop of growing concern about economic stagnation as growth in the eurozone stutters to a halt.
By Ralph Atkins and Claer BarrettContinue reading: Live blog: Mario Draghi’s October press conference
The European Central Bank will today flesh out details of its plan to buy bundles of loans sliced and diced and repackaged into products known as asset-backed securities, alongside covered bonds.
With growth stuttering and inflation falling to a five-year low, some fuel for the eurozone’s recovery is much needed.
The ABS plan could provide it, freeing up space on banks’ balance sheets to spur lending to the region’s businesses and households.
Why is the ECB doing this now?Continue reading: ECB preview – Three key ABS challenges