This article describes the actions taken by the European Central Bank (ECB) that have enabled its debt burdened states to lower their borrowing costs. The ECB has has provided low cost loans to domestic banks at almost zero interest. The domestic banks then purchase sovereign bonds at higher rates for a nice profit, but at a below market rate. This is much like the US Federal Reserve has done by enabling banks to borrow from the Fed at almost zero interest. The banks have earned a nice profit by purchasing US debt that pays a higher rate of interest. In a sense, the government is paying domestic banks to borrow money from the government. That has helped banks to recover from their loses in the financial crisis, and it has helped to restore lending.
It also appears that Greece has reached an agreement with its creditors. They may agree to swap the bonds they now hold for 30 year bonds with lower interest rates. That will give the Greek government some breathing room as its short term bonds come due and require refinancing.
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