The ECB is ready to support the European banking system. After the maxi Ltro operations concluded last winter, "the Eurosystem will continue to provide liquidity to solvent banks where necessary". The number one in Frankfurt reiterated it today during a conference, Mario Draghi, who then underlined how the loans already made need time to fully unfold their effects. In any case, according to the central banker, “we have reached the point where political choices have become predominant over monetary ones regarding the tools to be used in the future".
Meanwhile, the Governor of the Bank of Japan, Masaaki Shirakawa, confirmed a possible joint intervention of the central banks of the main economies to stabilize the markets in case of turbulence after the vote in Greece. "The central institutions - he said - are always in close contact with each other and share a common point of view, which is important for financial stabilization".
The news had been released by Reuters, which he had quoted a G20 source according to which "central banks are preparing a coordinated action to guarantee liquidity" and avert a credit crunch should the result of next Sunday's elections in Greece trigger panic in the markets. The G7 leaders – continued the source – are ready for an emergency meeting between Monday and Tuesday, during the G20 summit which will take place in Mexico in those days.
To read Mario Draghi's entire speech click here.
