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European Debt

Trichet says that it is an extraordinary measurement. It tries to in this way alleviate the tensions in the markets. The European Central bank maintains the types to the 1.5%. The advice of government of the European Central bank (BCE) maintained east Thursday the types of interest in the zone Euro in the 1.5%, in a while in which he increases the pressure so that the organization buys sovereign debt and avoids that the indebtedness crisis infects Spain and Italy. The president of the BCE, Jean-Claude Trichet, also has announced who the organization is going to give to the commercial banks the liquidity that need during six months in an extraordinary operation, due to the present tensions in the markets. Learn more at this site: David Delrahim.

The president of the BCE also assured that the monetary organization maintains the program of purchase of national debt, although it did not specify if it has carried out acquisitions recently. In a press conference after the meeting of the advice of government of the BCE, that decided to maintain the types of interest in the zone of the Euro in 1.5%, Trichet he announced that this operation of refinancing will be adjudged next 10 of August, by means of a procedure of auction to type of fixed interest and total awarding. Ascent of types the BCE, that already has increased twice the price of the money in which it goes of year, could reframe the ascent of the types of interest, that was predicted for the fourth trimester of the year, according to some experts. The industry of the zone of the Euro showed in July a remarkable cooling, that it has arrived at countries like France and Germany, while the inflation of the zone Euro fell two tenth until 2.5%. The Bank of England left the types of interest in the historical minimum of 0.5% inalterable, in which it remains from March of 2009 and although it confronts an inflation of 4.2%. The BCE the past initiated in May of year a program of purchase of sovereign debt of the countries of the Euro in the secondary market, by about 75,000 million Euros until now, to help the nations that go through refinancing difficulties. Without buying national debt In spite of the tensions in the markets of variable rent, the European monetary organization has not bought national debt since the end of March, for eighteen weeks.

The European Facility of Estabilizacin Financiera (FEEF) will be able to buy debt in the primary market once the advice of the European Union (the EU) modifies in October the agreement frame, but until then it seems that the BCE will have to undertake the function to restrain the speculative movements in the markets. The European Mechanism of Stability, that will be a permanent mechanism as of 2013 July, also will be able to buy debt in the primary market. When four years of the outbreak of the financial crisis are marked, the markets will pay attention to the commentaries of the president of the BCE, Jean-Claude Trichet, with respect to the strong ascent of the yield and the premiums of risk of the sovereign debt of Spain and Italy. Source of the news: The BCE will give during six months to the commercial banks the money that need

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