FRANKFURT (MNI) – Banks should not assume the European Central Bank
will meet their refinancing needs, ECB Executive Board member Juergen
Stark said in a newspaper interview published Friday.
Stark told German business daily Handelsblatt that “individual
banks or bank groups cannot depend on covering their refinancing needs
via the ECB.”
The ECB will continue buying government bonds “as long as we
consider it to be necessary,” he said, but continues to watch the
situation on the market very closely.
The ECB is gradually unwinding its unconventional measures and
member states must find a solution for banks in need of support, he
said.
“We have to use the chance for a new Stability Pact now — with
more automatism in the procedures and more automatism in the application
of sanctions,” Stark urged.
–Frankfurt bureau tel.: +49-69-720142. Email: dbarwick@marketnews.com
[TOPICS: M$$EC$,MT$$$$,M$$CR$,M$$X$$]
