The Central Bank of Cyprus said that the European Central Bank andthe euro area’s national central banks, collectively known as the Euro system, recently entered the second round of Cypriot government bond purchases, as part of the ECB’s expanded asset purchase programme.
“This action follows the successfully completion of Cyprus’s adjustment programme review, which is a precondition for the purchase of Cypriot government bonds as part of the public sector purchase programme,” the central bank said in an emailed statement.
The ECB initiated the first round of Cypriot government bond purchases from the secondary market in July.
“The inclusion of Cypriot government bonds in the expanded asset purchase programme is expected to continue to benefit Cyprus directly through the further reduction of the government’s borrowing cost and indirectly by strengthening confidence in the Cypriot economy and the domestic banking system,” the central bank said.
Source: Cyprus Mail
