European Central Bank to create new anti-fragmentation tool

ISTANBUL

The European Central Bank announced Wednesday it will create a new anti-fragmentation instrument and apply flexibility in reinvesting redemptions.

The bank exchanged views on a current market situation, said a press release issued after an extraordinary meeting, recalling that the bank's Governing Council pledged to act against resurgent fragmentation risks previously.

"Based on this assessment, the Governing Council decided that it will apply flexibility in reinvesting redemptions coming due in the PEPP (Pandemic emergency purchase programme) portfolio," the statement read.

The council also decided to accelerate the completion of the design of a new anti-fragmentation instrument.