FRANKFURT (Reuters) – The European Central Bank will gear up to buy Italian and Spanish bonds on the open market but would only act after euro zone governments have activated bailout funds to do the same, ECB President Mario Draghi said on Thursday.
Draghi indicated that any ECB intervention would start at the earliest in September and would depend on countries in trouble on bond markets making a request and accepting strict conditions and supervision.
FRANKFURT (Reuters) – European Central Bank President Mario Draghi was under intense pressure from investors, European leaders and even the United States to deliver on Thursday on his pledge to do whatever it takes to save the euro.
Draghi faced the biggest test of his nine months’ leadership of the central bank at its monthly policy meeting, which began at 8:00 a.m. British time. Any sign that he overplayed his hand when he made the bold pledge a week ago could see markets punish the euro zone.
FRANKFURT (Reuters) – European Central Bank President Mario Draghi faces intense pressure from investors, European leaders and even the United States to deliver on Thursday on his pledge to do whatever it takes to save the euro.
Draghi will face the biggest test of his nine months’ leadership of the central bank when it meets later in the day, and any signs that he overplayed his hand when making the pledge a week ago could see markets punish the euro zone.
FRANKFURT (Reuters) – A rush by consumers and firms to pull their money out of Greek banks continued in June, European Central Bank data showed on Thursday, adding to the pressure on the country’s troubled banking system as doubts grow about Greece’s future in the euro.
Speculation about Greece possibly quitting the euro was intense in May when anti-bailout parties saw a strong showing in elections, but the Greek central bank said the process had reversed after the June 17 election.
FRANKFURT (Reuters) – European Central Bank Governing Council member Ewald Nowotny has broken ranks with ECB colleagues, saying that giving Europe’s permanent rescue fund a banking license to increase its capacity had merits.
Granting the fund, the European Stability Mechanism (ESM), a banking license would allow it to exchange bonds it buys to support highly indebted countries for fresh cash from the ECB, increasing its firepower without additional government funds.
FRANKFURT, July 20 (Reuters) – The European Central Bank
turned up the heat on Greece on Friday ahead of a review of its
bailout programme, saying it would stop accepting Greek bonds
and other collateral used by Greek banks to tap ECB funding, at
least until after the review.
The ECB move, which analysts said was aimed at stepping up
pressure on Athens to adhere to the commitments of its EU/IMF
bailout, will force Greek banks to turn to their national
central bank for Emergency Liquidity Assistance (ELA) funds.
Those funds will be more expensive than funds available in the
ECB’s regular liquidity operations.
FRANKFURT, July 17 (Reuters) – European Central Bank (ECB)
President Mario Draghi noted on Tuesday that the question of
burden sharing with senior bond holders is evolving in Europe, a
spokesman for the ECB said, in the first remarks to be
attributed to the president publicly on the matter.
In a limited change of policy, the ECB is now willing to see
senior bondholders take losses when banks that are not
systemically important fail, but euro zone finance ministers
oppose such a move, euro zone officials said on Monday.
MANNHEIM, Germany, July 17 (Reuters) – German analyst and
investor sentiment dropped for a third consecutive month in
July, a survey showed on Tuesday, providing further evidence
that the euro zone crisis is taking its toll on morale in
Europe’s largest economy.
But the ZEW think tank, which conducts the monthly poll,
said expectations may have now hit bottom and that the outlook
for the rest of the year should prove stable.
FRANKFURT/CASABLANCA, Morocco (Reuters) – Banks slashed the amount of money they parked at the European Central Bank after it stopped paying interest on overnight deposits on Wednesday, but there was no sign they were using it to lend more or buy the bonds of crisis-hit euro zone states.
The unprecedented cut in deposit rates to zero – approved last week – means banks now get nothing for parking cash at the ECB and officials hope that will nurture more interbank lending by encouraging lenders to look for more profitable options.
FRANKFURT, July 5 (Reuters) – The European Central Bank cut
interest rates to a record low on Thursday to breathe life into
a deteriorating euro zone economy and back up measures agreed by
government leaders last week to tackle the bloc’s debt crisis.
The quarter-point cut in the ECB’s main refinancing rate to
0.75 percent was in line with market expectations and followed a
dire batch of economic data that show even euro zone powerhouse
Germany is entering a modest downturn.