Gabi Thesing has the story at Bloomberg Business Week in ECB Says OMT Is Legal as Necessary Tool in Special Times.
See also Jana Randow at Bloomberg on ECB Rejects IMF Call for Lower Rates Citing Broken Transmission [transmission of the ECB policy].
See The European Central Bank
- general index
- legal framework index
- STATUTE OF THE EUROPEAN SYSTEM OF CENTRAL BANKS
AND OF THE EUROPEAN CENTRAL BANK,
which provides inter alia:
MONETARY FUNCTIONS AND OPERATIONS OF THE ESCB
Accounts with the ECB and the national central banks
In order to conduct their operations, the ECB and the national central banks may open accounts for credit institutions, public
entities and other market participants and accept assets, including book entry securities, as collateral.
Open market and credit operations
18.1. In order to achieve the objectives of the ESCB and to carry out its tasks, the ECB and the national central banks may:
— operate in the financial markets by buying and selling outright (spot and forward) or under repurchase agreement and by lending or borrowing claims and marketable instruments, whether in Community or in non-Community currencies, as well as precious metals;
— conduct credit operations with credit institutions and other market participants, with lending being based on adequate collateral.
18.2. The ECB shall establish general principles for open market and credit operations carried out by itself or the national
central banks, including for the announcement of conditions under which they stand ready to enter into such transactions."
[emphasis added by LawPundit]