LJUBLJANA (MNI) – European Central Bank President Mario Draghi said
Thursday that the ECB’s OMT bond-buying program has already had a
significant positive effect on credit conditions in the Eurozone.
“There was a substantial, significant improvement all across
financial markets,” Draghi told a press conference here. While there has
been a correction since the initial announcement of the OMT on September
6, interest rates spreads “are still well below” their levels in July,
Draghi said.
He also noted that there has been a significant increase in debt
issuance by companies and banks since the OMT annoucement and that
imbalances in the Target 2 payments system have begun to stabilize.
“So all in all the effect has been positive,” he said.
Draghi warned, however, that market tensions continue to persist
and that governments should not ease up on reforms.
“I should also express a note of caution here – volatility is still
relatively high,” Draghi said. “Governments will have to persevere in
their reform action on all fronts.”
–Paris newsroom; +33142715540; jduffy@marketnews.com
[TOPICS: M$$EC$,M$$CR$,M$X$$$,M$P$$$]
