The PEPP also allows for the purchase of corporate bonds. What is the situation for Greek corporate bonds? Are they included in the PEPP? Can they be included in the future? In principle, non-financial corporate bonds issued in any euro area country, including Greece, can be included in the PEPP if they meet the relevant eligibility requirements, including the minimum rating threshold.
For the time being, no Greek corporate bonds qualify. But I hope that this will change in the future. Over the past decade, prudential issues such as non-performing loans (NPLs) have been very challenging to deal with. NPLs have been one of the main structural problems in the Greek banking sector, preventing investment and growth in the Greek economy.