VALENCIA, Spain (MNI) – The European Central Bank will announce
next week how it intends to sterilize the bond purchases it has been
conducting since Monday, ECB Executive Board member Jose Manuel Gonzalez
Paramo said Thursday afternoon.
Speaking to reporters after a public appearance at a conference in
this Mediterranean coastal city, Gonzalez Paramo was asked for details
about the volume of bonds the ECB would buy and precisely how it planned
to drain the liquidity that was created by purchasing them. He said the
ECB would not be giving details of how much debt it would buy, but that
plans for sterilizing the purchases would be announced next week.
Paramo said the central bank’s controversial decision to buy bonds,
announced in the early hours of Monday morning, was taken by a
“significant majority” of the ECB’s Governing Council member. “The
Council is a collegial body, and the decision was taken collegially,” he
said.
Council member Axel Weber, president of the Bundesbank, made clear
earlier in the week that he was one of the dissenters. Weber said he was
“critical” of the bond buying plan despite the extreme circumstances.
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