ECONOMY

Stournaras: PEPP has contained the impact of the pandemic

stournaras-pepp-has-contained-the-impact-of-the-pandemic

The European Central Bank’s pandemic emergency purchase program (PEPP) contributed toward stabilizing liquidity conditions during the pandemic crisis, helped in containing a rise in state bond yields and ensured the smooth operation of the monetary policy transmission mechanism in the euro area, Bank of Greece Governor Yannis Stournaras said on Friday.

Addressing the fifth Simulation Conference of the European Central Bank, Stournaras referred to the inclusion of Greek state bonds in the PEPP program, saying it covered Greek state bonds despite the fact that Greek debt is not investment-grade and helped in limiting the impact of the pandemic on financial conditions in Greece.

Stournaras noted that the efficiency of the program reflected mainly the innovative flexibility in the composition of securities purchases by the Eurosystem.