BRUSSELS (MNI) – Fears that the Eurozone banking system is facing a
liquidity problem are not warranted, European Central Bank President
Jean-Claude Trichet said Monday.
“Fears that there would be liquidity problem in the banking system”
of systemic nature are “wrong,” Trichet said in opening remarks for a
discussion here of policy issues amid the sovereign debt crisis.
Nevertheless, Trichet reiterated the central bank’s call to private
lenders to “recapitalize as effectively as possible.”
It is “decisive” for the ECB to ensure price stability, especially
in the current environment of uncertainty, he said. All countries would
suffer if inflation expectations became unanchored, he warned.
[TOPICS: M$$EC$,M$X$$$,MT$$$$,MGX$$$,M$$CR$]
