Financial support measures potentially involving a significant transfer of credit risk from financial institutions to the taxpayer clearly fall into the realm of fiscal policy. The decided outright purchases of covered bonds are fully consistent with this fundamental principle.
But a part of the financing was short-term, requiring a regular roll-over. Furthermore, most of the financing came in a foreign currency, while most revenues are denominated in the local currency. Unlike the popular wisdom, it is not a reckless risk behavior of foreign investors that put our economy at risk – it is the lack of it.