The head of the Central Bank of Portugal has called for the release of

Government of the Eurozone countries need to think about the General issue of “coronavirus bonds” in response to the pandemic COVID-19 to prevent a new sovereign debt crisis, said a member of the governing Council of the European Central Bank’s Carlos Costa.

the article aimed to Reuters, Costa, who heads the Bank of Portugal, stressed the need for General and wide-ranging the European response to the pandemic.

“the Inability to cooperate during this crisis will forever harm the European project,” wrote Costa. He stressed that “we need to find solutions to avoid becoming an emergency situation with coronavirus in the second sovereign debt crisis”.

According to the head of the Central Bank of Portugal, all member States should act together, irrespective of their budgetary provisions.

“One option that deserves further analysis is the possibility that the ESM will release “coronavirus bonds” and the proceeds will be sent to all the needy member States”, — he wrote.

These bonds would be repaid through long-term EU budget and would have a very long maturity in a few decades, to reduce the annual contributions of the member States. The proceeds will help to Fund efforts to combat coronavirus in proportion to the gravity of the crisis in health and the resulting economic problems.

According to the Vice-President of the ECB Luis de Hindos, Europe will face a recession due to the effects of the outbreak of coronavirus, although in the second half of the region’s economy needs to show growth.

on Thursday, the ECB announced that it will launch an emergency program of buying bonds worth 750 billion euros to limit economic damage from a pandemic. Purchase program and additional government and corporate bonds will be completed before the end of the year.