EBC rates remain amidst Greek support
(12 April 2010 – Europe) The European Central Bank’s (ECB) president, Jean-Claude Trichet said late last week in a bid to calm down the markets, after ECB decided to remain its key interest rate at the record low level of 1 percent, that default is not a big issue for Greece.
Default is not a great issue for Greece, Mr Trichet said at a press conference to explain the rates decision.
The support package outlined in Brussels by EU leaders last month has workable framework, which means a very, very serious commitment by the eurozone heads of government, Mr Trichet added.
Euro zone leaders agreed to create a joint financial safety net with the IMF to help debt-ridden Greece and to try to restore confidence in their common currency after weeks of wrangling.
Under the accord, Athens would receive coordinated bilateral loans from other countries that use the euro and money from the International Monetary Fund if it faced severe difficulties.
Mr Trichet downplayed his earlier opposition to the involvement of the International Monetary Fund during the press brief.
The ECB never doubted the IMF has very good expertise and the position of the ECB has always been to say that it wanted the governments in the euro-zone to take up their responsibilities, Mr Trichet highlighted.
The ECB's president said that what is important is the measures that are taken and implemented by the Greek government and the Greek parliament.
Mr Trichet also signalled the European Central Bank was in hurry to tighten policy as the Greek crisis delays the central bank's exit strategy, saying the ECB's benchmark rate was appropriate.
The support package outlined in Brussels by EU leaders last month has workable framework, which means a very, very serious commitment by the eurozone heads of government, Mr Trichet added.
Euro zone leaders agreed to create a joint financial safety net with the IMF to help debt-ridden Greece and to try to restore confidence in their common currency after weeks of wrangling.
Under the accord, Athens would receive coordinated bilateral loans from other countries that use the euro and money from the International Monetary Fund if it faced severe difficulties.
Mr Trichet downplayed his earlier opposition to the involvement of the International Monetary Fund during the press brief.
The ECB never doubted the IMF has very good expertise and the position of the ECB has always been to say that it wanted the governments in the euro-zone to take up their responsibilities, Mr Trichet highlighted.
The ECB's president said that what is important is the measures that are taken and implemented by the Greek government and the Greek parliament.
Mr Trichet also signalled the European Central Bank was in hurry to tighten policy as the Greek crisis delays the central bank's exit strategy, saying the ECB's benchmark rate was appropriate.
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