EBRD Allocates € 1 Billion to Fight Pandemic Impact
The European Bank for Reconstruction and Development (EBRD) has announced an emergency “solidarity package” of € 1 billion. The funds will go to help entrepreneurs cope with the consequences of the coronavirus pandemic.
However, the Covid-19 economic control strategy may require rethinking for two main reasons:
- Firstly, these funds may simply not be enough. This is indicated by stock markets, as investors fear that measures will not be adequate.
There are also questions regarding the timing of assistance. How quickly does this help reach the final destination?
- Secondly, the government is actively engaged in issuing bonds. But the bond market reacted with fear: 10-year bond yields rose from 0.5% on Tuesday morning to 0.75%.
Oversupply risk also exacerbates deep distrust, as is the case in stock markets. The UK’s leading stock index, the FTSE100, fell 4.8% on Wednesday and another 4.05% on Thursday, losing 32.6% over the year.
“If the markets do not function properly, this could hit credit markets – a serious problem, as corporate America has borrowed more than ever before,” said deVere CEO, adding: “I am sure that the current volatility is ultimately emphasizes that we live in a time of great opportunity, opportunity and great promise. “