ECB working on lending scheme for coronavirus-hit companies



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ECB working on lending scheme for coronavirus-hit companies

Frankfurt-based ECB (European Central Bank), the central back of the bloc’s 19 member states that administers monetary policy within the EU, had been making preparations to provide businesses with liquidities hurt by the consequential repercussions of the coronavirus outbreak, at least three sources familiar with the subject-matter said on Tuesday, the 3rd of March 2020, on condition of anonymity as the sources were not authorized to speak about the subject-matter on public.

In point of fact, as the virus has been spanning across the five continents, a number of Central Banks had been under tremendous pressure to ease monetary policy amid a steep downturn in global economic growth, as a raft of businesses across the globe had been facing off the financial fallouts of coronavirus-related travel restrictions, waning demand alongside supply chain disruptions, while the small- and medium-sized businesses in the EU alongside emerging economies would likely to be the hardest hit, suggested analysts.

Meanwhile, adding that there would not be any coordinated effort and the government actions within the bloc would be the main line of defence, the sources were also quoted saying late on Tuesday (March 3rd) that small- and medium-sized enterprises could receive a reluctant invitation of a longer-term refinancing operation amid a steep lack of room for ECB’s Lagarde to loosen up the monetary policy further, since the ECB’s former Chair Draghi’s last act as ECB head to launch a EU debt buyback program last year had left the bloc’s Central Bank nearly bare-handed.