–Adds Comments On Adjustment In Ireland
FRANKFURT (MNI) – The European Central Bank has decided to suspend
the minimum collateral requirements for Portugal, ECB President
Jean-Claude Trichet said Thursday.
Trichet said that the central bank had taken this decision in light
of the EU/IMF adjustment program in Portugal. The move follows rating
agency Moody’s decision to downgrade Portuguese government debt to junk
status earlier this week.
The central bank already dropped the rating floor for Greek
government bonds last year. However, Trichet reiterated that the central
bank maintains its position that it will not take Greek debt in its
refis should they be rated as default.
“We say ‘No’ to selective default. Full stop,” Trichet said.
Trichet rejected criticism that raising interest rates would harm
troubled peripheral countries. All countries “are benefitting from the
fact that we deliver price stability,” he said.
Turning to the third country currently receiving EU/IMF help,
Ireland, Trichet said that program had already produced some positive
results:
“I have to say that the results I see are going in the right
direction. The current account of Ireland is positive… That is
something that demonstrates that the adjustment is proceeding in line
with what is foreseen.”
–Frankfurt bureau; +49-69-720142; frankfurt@marketnews.com
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