24 de novembro de 2014

Asmussen on Portugal: OMT "is for the Governing Council to decide; necessary to issue reasonable amounts of bonds with longer maturities" (RTRS)

In an interview published in Tuesday's edition of the Jornal de Negocios, Joerg Asmussen, Member of the ECB's Executive Board, said Portugal took "a significant step forward" with the issuance of a three-year bond as part of a bond swap in October, but that was "not enough". Asmussen explained that access to the OMT - ECB's backstop mechanism ...

Draghi, on monetary financing: "that's not going to happen!" (EU Parliament)

At a hearing in the European Parliament this morning, the President of the ECB, Mario Draghi, was bombarded with questions about the conditionality of the OMT program. Draghi said that the ECB can not replace the lack of action from governments with monetary financing: "that's not going to happen!" ...

Draghi: "Without conditionality you would certainly have fiscal dominance" (BBG)

At the press conference of the ECB after the monthly meeting of the Governing Council, yesterday, Mario Draghi, President of the Central Bank, an Italian, to explain the different roles of the conditionality of the OMT program, used the damning words: "moral hazard". Draghi argues that conditionality is an essential part of the OMT: "First ...

Draghi: conditionality "doesn't necessarily have to be punitive" (ECB)

When asked this afternoon on the kind of conditions that Spain would incur if the country asks for a bailout, Mario Draghi said that conditionality "doesn't necessarily have to be punitive". He explained that an MoU is the way to ensure political support of all Euro zone countries and thus justify an eventual intervention from the ECB, with ...

Merkel and Schaeuble on a knife edge to support Draghi (WSJ)

Lately headlines suggest fights and/or divisions between the German government and the central bank. On the one hand, the Bundesbank, an institution respected by the German public opinion, true to its own monetary policy, and on the other, Chancellor Merkel and Finance Minister Schaeuble. On the government side, Merkel and Schaeuble are ...

The Rajoy Dilemma: borrowing costs on the edge of a knife or a sovereign MoU (CNBC)

The containment barrier effect of the Outright Monetary Transactions program of the ECB, presented a week ago, has significantly reduced the level of the borrowing costs for Spain and Italy. But if countries do not formally requested support, the OMT program will not be activated. Rajoy's dilemma is whether this effect can persist, thereby ...
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