–ECB Still Ready To Supply Abundant Liquidity If Needed

BRUSSELS (MNI) – Banks’ demand for European Central Bank liquidity
has diminished, ECB President Jean-Claude Trichet said on Thursday.

“As you know, we are in a mode for all those operations of supply
of liquidity, which is very, very abundant, and this signals that the
banks were not asking for the same level of liquidity as they were
asking for before,” Trichet told reporters.

“The market has taken this as a positive,” he observed. “I would
not comment myself; I would only say that it is true that the demand for
liquidity has diminished in this occasion.”

Banks borrowed less than expected in ECB liquidity operations, the
results of which were announced on Thursday, prompting speculation that
money market conditions are improving.

–Brussels: 0032 487 (0) 32 803 665, echarlton@marketnews.com

[TOPICS: M$$EC$,M$X$$$,M$$CR$,MGX$$$]