FRANKFURT (MNI) – Global investment funds are flowing back into the
euro in the wake of the European Central Bank successful three-year
liquidity operations, ECB President Mario Draghi said Thursday.

“The LTRO, both operations, I would say, are an unquestionable
success. The risk environment has improved enormously,” Draghi told a
press conference after the meeting of the Governing Council here.

“Certainly, we see many signs of return of confidence in the euro.
Real money investors have to some extent come back. We see the presence
of money market funds, which were the first to fly away from the euro,”
he said.

“We see again pension funds, investment funds. All in all, we see
that great progress has been achieved. Simply compare the situation in
November,” he said.

“Markets have reopened … insecure markets have reopened…covered
bond markets. Even the interbank market, though limited to the short
term and national boundaries, has even started working slightly better,”
he noted.

Draghi said that the return of these flows was also due to the
serious reform and consolidation efforts of governments in the Eurozone:

“Let me also add that this is also due to the serious reform
efforts undertaken by the governments of the euro area and fiscal
compact.”

–London Bureau; Tel: +44 207 8627492; email: ukeditorial@marketnews.com

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