On Monday, Benoit Coeure, ECB Executive Board member, stated the European Central Bank possesses Euro 50 billion equivalent to US$65.7 billion. The aforementioned money in asset-backed securities (ABS) were based on loans to small and mid-sized businesses. ECB said given the right terms, it could earn more amount.
Because of Euro zone's loan crunch and deep recessions in most states, small and mid-sized enterprises (SMEs) were struggling to receive deals from banks.
According to Coeure's talk on a summit in Paris, ECB had previously taken on asset-backed securities which assembled loans to help SMEs.
"On our balance sheet, we've got about 50 billion euros in ABS based on pools of SME loans," he asserted. "We've got about 50 billion euros - before the haircuts - in direct claims on non-financial companies."
By the end of the first quartile, the said figures were compared with a sum of Euros 338 billion of ABS that was posted as guarantee at ECB.
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