In the early evening of Tuesday 7 April, while European finance ministers were attempting to agree new measures to complete the array of European weapons to tackle the pandemic crisis, the European Central Bank (ECB) announced an “unprecedented” easing of its collateral requirements so that banks can be provided with liquidity to make refinancing them easier and to stimulate the provision of loans.
In a press release, the ECB says it will temporarily increase its “risk tolerance” by...