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                      European Central Bank May Buy Bonds

   by VOA News

   The European Central Bank could act this week to buy the bonds of
   debt-plagued governments in the 17-nation euro currency zone to ease
   their borrowing costs.
   Bank president Mario Draghi told European lawmakers Monday that buying
   government securities that have to be paid back in at least three years
   does not violate any European Union rules. Central bank policy makers
   are set to meet Thursday and could unveil a new debt-purchasing plan
   then.
   European leaders have struggled to end the continent's debt crisis -
   now in its third year. Greece, Ireland and Portugal have all been
   forced to secure international bailouts, while borrowing costs for
   debt-plagued Spain and Italy have risen as they sold bonds in the
   world's financial markets. Interest rates on their bonds could be cut
   if the continent's central bank purchases their debt.
   Several European leaders are shuttling between capitals this week to
   discuss the continent's economic fortunes. On Tuesday, French President
   Francois Hollande met in Rome with Italian Prime Minister Mario Monti.
   Moody's Investors Service on Monday lowered its ratings outlook for the
   European Union from stable to negative. The credit rating agency said
   the negative outlook on the EU's long-term rating reflects the negative
   outlook for Germany, France, Britain and Netherlands, which together
   account for almost half of the EU budget revenue.
   But Moody's maintained the bloc's triple-A rating, citing its
   "conservative budget management" and "the credit worthiness and support
   provided by its 27-member states."
   The credit-rating agency did not exclude the possibility of a future
   downgrade if a "deterioration in the credit worthiness of EU member
   states" should prompt such a move or an upgrade if the situation
   improves.


   Some information for this report was provided by AP and AFP.
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References

   1. http://www.voanews.com/content/european_central_bank_may_buy_bonds/1501423.html