ECB Profits from Greek Bond Holdings at €7.8 Billion

11 October 2017
118 Views

The European Central Bank has made nearly €8bn in profits from its holdings of Greek government debt, according to a written response provided by the ECB to a Greek MEP request.

According to the response, holdings of Greek sovereign bonds acquired under its Securities and Markets bond-buying programme (SMP) had resulted in €7.8bn of net income interest between 2012-2016.

These profits – as with others made from national bond holdings – are then redistributed to all 19-country central banks in the eurozone.

The SMP programme was launched at the start of the eurozone’s debt crisis in 2010 and ramped up to include Italian and Spanish government debt in 2011.

It was designed to ease market pressure on the borrowing costs of the eurozone’s member states and preceded the central bank’s more ambitious quantitative easing programme, which launched in 2015.

News of the billions of euros in profits are likely to anger hardliners in the Greek government who have long urged the ECB to allow Greece into the central bank’s current QE package.

The SMP profits have been promised to Greece at various points during its seven years of financial rescues.

Source: Greek Reporter

You may be interested

48% of Greeks say the country benefited from EU
FINANCE
shares69 views
FINANCE
shares69 views

48% of Greeks say the country benefited from EU

makis - Oct 17, 2017

48% of Greeks believe the country has benefited from the EU in 2017, a 4-point rise compared to 2016, according…

Tsipras-Trump meeting underway
POLITICS
shares75 views
POLITICS
shares75 views

Tsipras-Trump meeting underway

makis - Oct 17, 2017

The meeting between the US President Donald Trump and the Greek Prime Minister Alexis Tsipras in the White House has…

Mitsotakis’ meeting with Jean Claude Juncker and the Communications Task Force
POLITICS
shares113 views
POLITICS
shares113 views

Mitsotakis’ meeting with Jean Claude Juncker and the Communications Task Force

makis - Oct 17, 2017

Kyriakos Mitsotakis is set to attend the European People’s Party summit in Brussels. On the 18th and 19th of October…

Leave a Comment

Your email address will not be published.