On the regulatory front, the gap that existed in the case of NCDs with maturities less than one year has received the regulatory attention. Non Convertible Debentures of maturity of less than one year are being issued with innovative features such as, interest rates linked to overnight rate, American style put/call optionality, which imparts demand liability character to these instruments.
The financing of the programmes with the ESM’s resources is an incentive to strengthen the governance of the Union further. Monetary policy can guarantee stability only if the euro area’s economic fundamentals and institutional architecture are consistent with it. Confidence in the irreversibility of the euro is the key.