Greece received a more-or-less early “Christmas present” on Thursday, as the European Central Bank (ECB) sent a “strong signal” by explicitly announcing that it could reinvest proceeds from its PEPP bond-buying scheme in Greek government bonds if the country needs support.

The wording, in fact, came from ECB President Christine Lagarde.

So far, the eurozone’s central bank has purchased roughly 35 billion euros worth of Greek state bonds under its debt-buyback scheme, which expires in March 2020.

Nevertheless, Greek debt is still excluded from the ECB’s older and continuing Asset Purchase Program due to a lower than investment grade rating.

“Greece has improved its ratings but does not have the rating that makes it eligible under the APP, and for this reason we have decided to have a specific reference to Greece and the Hellenic Bank,” Lagarde told reporters on Thursday.

“That’s a really strong signal, and it’s rare that we have a country-specific clause … That particular clause was very strongly supported in the governing council.”

Earlier, the European central bank said it could adjust PEPP re-investments in the event of renewed market fragmentation related to the COVID-19 pandemic, according to Reuters.

“This could include purchasing bonds issued by the Hellenic Republic over and above rollovers of redemptions in order to avoid an interruption of purchases in that jurisdiction which could impair the transmission of monetary policy to the Greek economy while it is still recovering from the fallout of the pandemic,” an ECB statement read.

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