EU: Challenged OMT is back in town


If the ECB were to purchase only bonds from certain countries, would the OMT be considered a monetary policy tool, instead of an economic policy tool? Some German judges believed this programme would be a hidden, unfair bailout.

There are many pending questions, as JP Morgan analysts pointed out on Monday: does the OMT violate the ECB’s monetary financing prohibition? Is there a minimum rating for the bonds to be purchased? Can the ECB have a pari-passu status with the rest of investors?

The tribunal may need up to six months to rule on the matter, according to the tribunal’s annual report for 2013.After its decision is released, the case will be sent back to the German judges who will have the final say.



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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.

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