“This is a complete sensation,” said Matthew Cairns, chief analyst at Rabobank’s Dutch financial institution. “It shows markets and the European Union that there will be demand for these bonds,” he added.
–
In the first round, the EU will sell 10 billion euros in bonds with a ten-year maturity and seven billion euros in bonds with a maturity of 20 years, Reuters said, referring to working materials that it had the opportunity to look into.
–
Investors with a maturity of ten years wanted to buy the investors, who offered a total of 145 billion euros. This is in itself the largest volume achieved in the sale of bonds in the Union. Twenty-year bonds met demand of € 88 billion. The final selling price has not yet been determined.
–
The current offer is the first phase of the EU’s plan to increase debt to fifteenfold in less than ten years. The purpose is to provide money for Member States struggling with the effects of a pandemic. The Union has two main programs for this purpose.
–
The head of the ECB, Christine Lagarde, is watching the speech on the Frankfurt Stock Exchange.
Foto: Ralph Orlowski, Reuters
At the same time, the offer brings the Union closer to joint issuance of bonds, which some member states have long resisted. When the plan is completed, the EU will be one of the largest debtors on the European continent, Reuters reported.
–
The SURE program is an EU instrument of a temporary nature and its purpose is to prevent massive redundancies in emergency situations. It is intended for Member States that need to mobilize huge financial resources to combat the negative economic and social effects of the spread of coronavirus on their territory. In the form of loans from the EU, it will be able to provide assistance of up to 100 billion euros (2.7 trillion CZK) to the affected member states to help them deal with the sharp increase in spending to maintain employment.
—
:quality(80)/cdn-kiosk-api.telegraaf.nl/dabf9820-12fd-11eb-8517-02d2fb1aa1d7.jpg "Princesses Amalia and Alexia have just left Greece tonight | Inland")