Thursday, October 11, 2012

ECB European Central Bank Bond Purchasing Considered Legal as Outright Monetary Transactions OMT under Article 18.1 of the Statute of the European System of Central Banks

Bond purchases by the European Central Bank ECB are considered to be legal as Outright Monetary Transactions OMT under Article 18.1 of the Statute of the European System of Central Banks

Gabi Thesing has the story at Bloomberg Business Week in ECB Says OMT Is Legal as Necessary Tool in Special Times.

See also Jana Randow at Bloomberg on ECB Rejects IMF Call for Lower Rates Citing Broken Transmission [transmission of the ECB policy].

See The European Central Bank
  • general index
  • legal framework index
    which provides inter alia:

    Article 17

    Accounts with the ECB and the national central banks
    In order to conduct their operations, the ECB and the  national  central  banks  may  open  accounts  for  credit  institutions,  public
    entities and other market participants and accept assets, including book entry securities, as collateral.

    Article 18

    Open market and credit operations
    18.1.    In order to achieve the objectives of the ESCB and to carry out its tasks, the ECB and the national central banks may:
    —  operate  in the  financial  markets  by  buying  and  selling outright  (spot  and  forward)  or  under  repurchase  agreement  and  by lending or borrowing claims and marketable instruments, whether in Community or in non-Community currencies, as well as precious metals;
    —  conduct  credit  operations  with  credit  institutions  and  other  market  participants,  with  lending  being  based  on  adequate collateral.

    18.2.    The  ECB  shall  establish  general  principles  for  open  market  and  credit  operations  carried  out  by  itself  or  the  national
    central banks, including for the announcement of conditions under which they stand ready to enter into such transactions."
    [emphasis added by LawPundit]

Our Websites and Blogs

3D Printing and More 99 is not 100 Aabecis AK Photo Blog Ancient Egypt Weblog Ancient Signs (the book) Ancient World Blog Anthropomorphic Design Archaeology Travel Photos (blog) Archaeology Travel Photos (Flickr) Archaeo Pundit Arts Pundit Astrology and Birth Baltic Coachman Bible Pundit Biotechnology Pundit Book Pundit Chronology of the Ancient World Computer Pundit DVD Pundit Easter Island Script Echolat Einstein’s Voice Energy Environment and Climate Blog Etruscan Bronze Liver of Piacenza EU Laws EU Legal EU Pundit FaceBook Pundit Gadget Pundit Garden Pundit Golf Pundit Google Pundit Gourmet Pundit Hand Proof HousePundit Human Migrations Idea Pundit Illyrian Language Indus Valley Script Infinity One : The Secret of the First Disk (the game) Jostandis Journal Pundit Kaulins Genealogy Blog Kaulinsium Kiel & Kieler Latvian Blog Law Pundit Blog LexiLine Group Lexiline Journal Library Pundit Lingwhizt LinkedIn Literary Pundit Magnifichess Make it Music Maps and Cartography Megalithic World Megaliths Blog Minoan Culture Mutatis Mutandis Nanotech Pundit Nostratic Languages Official Pundit Phaistos Disc Pharaonic Hieroglyphs Photo Blog of the World Pinterest Prehistoric Art Pundit Private Wealth Blog PunditMania Quanticalian Quick to Travel Quill Pundit Road Pundit Shelfari Sky Earth Drones Sky Earth Native America SlideShare (akaulins) Sport Pundit Star Pundit Stars Stones and Scholars (blog) Stars Stones and Scholars (book) Stonehenge Pundit The Enchanted Glass Twitter Pundit UbiquitousPundit Vision of Change VoicePundit WatchPundit Wearable Technology Wizard WeTechWi Wine Pundit Word Pundit xistmz YahooPundit zistmz