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Italy, Spain and France would face 90 billion euro hit on new ECB 'key'

Reuters  |  FRANKFURT 

FRANKFURT (Reuters) - The European Central Bank would have to reduce its holdings of Italian, Spanish and French government bonds by nearly 90 billion euros if it strictly follows its new shareholder base, Reuters calculations on ECB data showed on Monday.The ECB started to buy government debt in 2015 in a bid to revive inflation in the euro zone, with a pledge to divide up its holdings in proportion to how much capital each country had paid into Frankfurt's coffers.Some four years and 2 trillion euros later, the ECB has deviated significantly from this so called capital key, which was ...

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First Published: Mon, December 03 2018. 23:16 IST