ECB bond-buying scheme likely to have loose conditions – Reuters

The European Central Bank (ECB) is likely to attach some loose conditions to a potential scheme designed to cap borrowing costs for the eurozone's most indebted states in a bid to avoid fragmentation risks, Reuters reported, citing sources.

Key takeaways

The scheme would likely have conditions, such as that countries comply with the European Commission's economic recommendations.

The ECB will spell out that the scheme's goal is simply keep bond spreads in line with their economic fundamentals, rather than bringing them to near-zero like they were before a crisis of confidence a decade ago.