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11 May 2015
ECB cannot be lender of last resort to countries – ECB’s Nowotny
FXStreet (Mumbai) - The European Central Bank (ECB) said on Monday that the bank cannot act as a lender of last resort to countries in the Eurozone, while stating that it is responsible only for the monetary side of the actions.
Nowotny added that next steps need to be politically based as ECB is doing what it can do on the monetary side. Meanwhile, on Greece, Nowotny said the Greek issue is much more political than economic one and that it is premature to give any details on the ongoing talks between Greece and its creditors.
On Eurobonds, Nowotny said that though Eurobonds are desirable, there are number of hurdles in issuing joint bonds.
Nowotny added that next steps need to be politically based as ECB is doing what it can do on the monetary side. Meanwhile, on Greece, Nowotny said the Greek issue is much more political than economic one and that it is premature to give any details on the ongoing talks between Greece and its creditors.
On Eurobonds, Nowotny said that though Eurobonds are desirable, there are number of hurdles in issuing joint bonds.