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Tuesday 23 September 2014

Boost for Europe as ECB says Blackrock will help develop bond buying plan

Published 28/08/2014 | 07:48

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ECB President Mario Draghi Announces Interest Rate Decision...Mario Draghi, president of the European Central Bank (ECB), speaks during a news conference at the bank's headquarters in Frankfurt, Germany, on Thursday, March 6, 2014. A month after saying he needs more data to make a decision, stronger-than-expected output and inflation and rising economic confidence might spare the European Central Bank president for now from radical steps such as negative rates. Photographer: Ralph Orlowski/Bloomberg...I
ECB President Mario Draghi

The European Central Bank has hired BlackRock Solutions to provide consultancy services in its preparations for a programme to buy asset-backed securities (ABS), an ECB spokesman said today.

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BlackRock, the world's largest money manager, will provide advice on the design and implementation of a potential ABS purchase programme, but all final decisions will be taken by the ECB itself, the spokesman said.

BlackRock declined to comment on its mandate with the ECB.

ECB President Mario Draghi said on Friday the central bank's preparations for outright purchases of ABS were "fast moving forward and we expect that it should contribute to further credit easing."

New York-based BlackRock Inc has played a prominent role in helping Europe deal with its financial crisis, designing stress tests for the Greek and Irish central banks in the wake of their crises.

The Bank of Greece hired BlackRock to conduct an asset quality review to determine potential credit losses up to 2016. The Irish Central bank similarly used BlackRock as a consultant to examine its books, including a review of its commercial real estate loans.

BlackRock had nearly $4.6 trillion in assets under management at the end of June. The company's BlackRock Solutions and advisory business generated $146 million(110.66 million euro) in revenue in the second quarter, or about 5.3 percent of its total revenue.

Reuters

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