PARIS (MNI) – The following text was released by the European
Central Bank on Wednesday regarding its Covered Bond Purchase Programme
2:

“Today, the CBPP2 ends as scheduled. On 6 October 2011, the
Governing Council of the European Central Bank (ECB) had decided on the
CBPP2, the technical modalities of which were published on 3 November
2011. The purchases of covered bonds commenced in November 2011. The aim
of the programme was to contribute (a) to easing funding conditions for
credit institutions and enterprises and (b) to encouraging credit
institutions to maintain and expand their lending to customers. The
initially targeted total nominal amount of purchases was E40 billion,
and the purchases were expected to have been carried out in full by 31
October 2012.

As already announced at the press conference of 4 April 2012, the
ECB had slowed down the pace of purchases in response both to investors
increasing demand for euro area covered bonds and to the decline in the
supply of covered bonds. Accordingly, a nominal amount of E16.418
billion was purchased on the primary and secondary markets between
November 2011 and October 2012. The Eurosystem central banks intend to
keep these covered bonds until maturity.

Should the Governing Council deem it to be appropriate to reopen
the programme, this will be communicated in advance.”

–Paris Newsroom, +33142715540
[TOPICS: M$$EC$,M$X$$$]