Skip to comments.EU central bank to issue more cheap loans
Posted on 01/12/2012 7:17:24 PM PST by Olog-hai
BRUSSELSEuropean Central Bank (ECB) chief Mario Draghi said on Thursday (12 January) after a monthly board meeting that he will keep up a "temporary" program of cheap loans for EU banks because it has "prevented a more serious credit crunch."
The ECB also kept the interest rate at 1 percent following a decrease from 1.25 percent in November.
"The provision of liquidity will continue to support euro-area banks and thus economic recovery. Our non-standard measures had a substantial contribution to improving the financial situation of banks," Draghi said during a press conference in Frankfurt.
Draghi highlighted the need to speed up work on the new inter-governmental treaty, inspired by his own "fiscal compact" put forward ahead of the December summit. "It would be highly welcomed if the fiscal compact was signed by the end of January rather than March as currently envisaged," he said.
As for the latest draft, which saw a series of measures watered down to accommodate demands from member states, Draghi said: "The wording of such rules needs to be unambiguous and effective."
(Excerpt) Read more at euobserver.com ...