The European Central Bank (ECB) said it will resume its covered-bond purchases starting in November and will offer banks two additional unlimited loans of 12 and 13-month as part of its measures to keep Europe liquid and avoid a new crisis.

The Bank's chairman Jean-Claude Trichet  said at a press conference today in Berlin that the central bank will spend €40 billion ($53 billion) on covered bonds, according to several market reports. The ECB also announced that it will hold interest rates 1.5 percent.

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