ECB head says stimulus program to help economyOctober 2, 2014 - 17:55 AMT PanARMENIAN.Net - European Central Bank head Mario Draghi says a stimulus program that includes buying private-sector bonds will mean a significant increase in the bank's efforts to help the economy, the Associated Press reports. After the bank decided to keep interest rates on hold Thursday, Oct 2, Draghi said the bank will start buying bonds made of bundles of bank loans in October. The purchases are meant to encourage banks to make more of the loans from which they are constructed. Draghi said the purchases would have a "sizeable impact on our balance sheet," which measures how much the bank is doing to support the economy. Draghi has said he wants to push the balance sheet toward levels it had in 2012, which would imply 1 trillion euros ($1.26 trillion) in new stimulus. Draghi added Thursday that the bank is ready, if needed to step up its bond purchases — a step that would pour newly printed money into the financial system. He noted recent data confirms the weakening of growth in the 18-countries that use the euro. The eurozone did not grow at all in the second quarter. "I have said many times, our recovery is weak, fragile, and uneven, and still is," he said. Speculation that the ECB may make wider purchases to include government bonds has weighed on the euro, driving it down from $1.39 in early May to around $1.26. So far, that has been one of the most significant effects of the ECB's record low interest rates and loose monetary policy. The lower euro helps raise inflation, currently at a worringly low 0.3 percent. And it helps exporters by making their goods cheaper in foreign markets. Related links: Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | The Power of One Dram to benefit Road of Life charity The companies inform that the May beneficiary of The Power of One Dram is the “Road of Life” charitable organization. Ucom General Director gives lecture at French University in Armenia The General Director of Ucom Ralph Yirikian delivered a lecture at the French University of Armenia. Kazakhstan welcomes Yerevan, Baku’s agreement to meet in Almaty Kassym-Jomart Tokayev has welcomed the agreement of Baku and Yerevan to hold negotiations in Almaty. Armenia offers to temporarily host, preserve Gaza manuscripts The Armenian Foreign Minister has said Yerevan is ready to help preserve manuscripts from the conflict zone in Gaza. |