Clearing house group LCH has thrown its support behind the European Union’s temporary support to mitigate unemployment risks in an emergency (SURE) programme, pledging that bonds issued as part of the scheme will be eligible for clearing at its RepoClear service.

About 87.4 billion euros (US$102.67 billion) of loans will be provided to 16 EU member states under the SURE programme, which aims to help finance increased national expenditure on short-term work schemes and other similar measures. LCH also pledged to support and clear the upcoming Next Generation EU Bonds.

Says LCH chief executive officer Christophe Hémon:  “The Covid-19 pandemic has significantly impacted both public health and the labour market across the globe. The EU’s SURE programme offers vital financing for employment schemes throughout the EU. At LCH, we are committed to supporting financial stability and we are delighted to be in a position to support this programme and contribute to the EU’s economic recovery by clearing the new debt.”