The European Central Bank will present details on Thursday of a new asset-buying plan with which it hopes to revive the flagging euro zone economy and see off the specter of deflation.
The ECB plans to buy asset-backed securities (ABS) – packages of reparcelled loans – with a view to spurring the market for such credit and supporting lending to the small- and mid-sized firms that form the backbone of the euro zone economy.
But for the plan to apply across the bloc, the central bank may need to buy ABS paper below the standard it usually requires for collateral offered up by those tapping its funding operations.
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