European Central Bank (ECB) announced on Monday that last week, significantly reduced the amounts allocated for the purchase of government bonds on secondary markets, AP.
ECB said that in the week ended December 9 to purchase government bonds worth 635 million euros (841 million dollars), much less to 3.66 billion euros purchases made in the previous week and 8, 58 billion dollars in two weeks ago.



In total, to date, purchases of government bonds amounted to 207 ECB billion. ECB reactivated this program in early August (after a break of 19 weeks) given that Italy and Spain were close to collapse after investors demanded yields increased to an unsustainable level.



Last week, European Central Bank announced that for the first time in its history, banks offer loans with maturity of three years, the idea to avoid the debt crisis cause a credit crunch to stifle the economy bloc.



The new President of the ECB, Mario Draghi, has announced that a refinancing operation 36 months from December 21 to replace a 12-month financing offer they consider the ECB earlier. In addition, it will cover all applications and there is the possibility of early repayment after one year.



The ECB also decided to facilitate access to bank loans by extending its guarantees required, and by reducing the level of reserves at 1% to 2%.



However, ECB President wanted to eliminate hopes for a massive intervention of the ECB bond market. 'I was surprised by default meaning that was given to my comments last week, "said Mario Draghi referring to his speech last week when he announced that further action could follow if the European leaders will agree on tighter budgetary controls.



Markets have interpreted these comments as an allusion to the ECB to buy government bonds more aggressively in the euro area. According to Mario Draghi European Union treaties prohibiting monetary financing of the states.



Also, Mario Draghi ruled the ECB to finance Member States, but via the International Monetary Fund. "This is incompatible with the European treaties, 'said the President of the ECB.



Previously, the European Central Bank (ECB) decided to cut the reference rate a quarter point to a record 1%. This is the second time in the last six weeks when the ECB would reduce the cost of credit in the euro area economy stimulating idea. In the third quarter of this year the euro area grew by only 0.2% anemic.