This programme was part of the “enhanced credit support” measures and its objective was to support a financial market segment that is particularly important for the longer-term funding of banks and the financing of the real economy in the euro area.
The spill-over effects connected with the intensification of the financial crisis in September 2008 had led to a virtual shut down of the covered bond market, notwithstanding the high credit quality of this type of asset. In response, the Eurosystem purchased EUR 60bn of covered bonds between July 2009 and June 2010.