Saturday, January 17, 2015

Draghi wants risks are reduced when purchasing debt – Yahoo Finance Spain

Draghi wants risks are reduced when purchasing debt – Yahoo Finance Spain

Frankfurt (Germany), Jan 16 (EFE) .- The president of the European Central Bank (ECB (Toronto: BCE-PA.TO – news )), Mario Draghi, wants risks are reduced in the debt purchase program and has proposed to Germany that each national central bank debt buy only their country, according to the German weekly “Der Spiegel”.

This weekly reported today-a preview of his upcoming edition-that “buying program sovereign debt ECB takes shape”.

The central banks buy and maintain titles only their own countries as the latest plans, said “Der Spiegel”, published on Saturday.

Draghi presented last Wednesday in Berlin reflections German Chancellor Angela Merkel and Finance Minister Wolfgang Schäuble.

This measure should serve to prevent Germany from taking risks in other countries.

The ECB wants to set a maximum volume limit market purchases of 20 or 25% of the volume State debt of a country.

Greece can not participate in the program because your debt does not meet the minimum quality standards, according to the newspaper.

Bank Governor Dutch (De Nederlandsche Bank), Klass Knot, has been in favor of transferring the debt purchase program to national central banks.

“If each national central bank debt only acquires its own state, would lower the danger that a redistribution of financial risks occur “Knot told the German weekly.

” We must prevent the back door ECB balance sheet decisions should reserve the politicians are taken countries of the euro area democratically elected “Knot

said. If the national central banks implement the proposed program Draghi and the country itself accountable for the risk of the purchased debt, the ECB It will make clear that “it is not monetary policy and fiscal policy,” he added.

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