Economy & Business, Volume 15, 2021

Abstract: The main objective of the paper is to analyze the extraordinary actions implemented by the European Central Bank (ECB) in response to the coronavirus pandemic in 2020-2021. These actions are mainly aimed at helping the eurozone economy absorb the shock of the pandemic, maintaining easier lending conditions, facilitating access to credit for individuals and businesses, and increasing banks’ capacity to lend. The paper is focused on the new unconventional monetary policy programme of the ECB implemented during the coronavirus pandemic – the Pandemic Emergency Purchase Programme (PEPP), as well as on the enhanced Targeted Longer-term Refinancing Operations (TLTROs), the introduced new non-targeted Pandemic Emergency Longer-term Refinancing Operations (PELTROs), the implemented comprehensive set of collateral easing measures, the increased banks’ lending capacity and the extended swap and repo lines. The research methodology includes theoretical and methodological analysis, comparative study, inductive and deductive approach, descriptive study, systematic approach, empirical analysis and critical analysis. The paper concludes with summarizing the results from the study.