3 Dec 2010

ECB to continue buying govt bonds

10:19 am on 3 December 2010

The European Central Bank has confirmed it will continue to purchase European government bonds as the euro zone debt crisis continues.

Government bonds are effectively loans, made by investors to countries.

The ECB introduced a scheme to buy Government bonds in May, during the Greek financial crisis.

So far it has spent 67 billion euros ($US88 billion) on bonds to support eurozone nations with high debt levels.

However, ECB's president Jean-Claude Trichet on Thursday gave no plans for expansion.

As expected, the ECB held eurozone interest rates at 1% for the 19th consecutive month - a decision that was widely-expected.