PARIS (MNI) – European Central Bank Executive Board Member Benoit
Coeure said Tuesday that the central bank could distribute its profits
on Greek bonds to Eurozone member states, which in turn could use them
to help Greece reduce its debt burden.
In an interview with the French daily Liberation, Coeure, who
started an eight-year term on the ECB Board this year, said it was “out
of the question” for the central bank to participate in a private-sector
deal to write down the value of Greek bonds.
However, he noted that the ECB’s Greek bonds had been acquired at
prices below face value. “If there is a profit, like all monetary
revenue, it would qualify for distribution to member states, which could
use it to contribute to the sustainability of Greek debt,” he suggested.
His comments echo similar remarks by ECB President Mario Draghi
last Thursday.
Coeure also said that progress has been made in overcoming the
Eurozone’s debt crisis but it was too early for the ECB to relax its
vigilance.
“Member states have made considerable progress in responding to the
crisis,” he said. “A day will come when recognition of this will ease
the freezing up in financial markets.”
–Paris newsroom; +33142715540; jduffy@marketnews.com
[TOPICS: M$$CR$,M$$EC$,MGX$$$]
