Draghi: Banks and govts must do without ECB help

9 March 2012

Banks and governments across Europe need to make sure they take full advantage of the major level of support offered to them by the European Central Bank (ECB) recently.

That is according to Mario Draghi, president of the institution, who indicated yesterday (8 March) the body will not provide any more significant measures to help financiers and sovereign states in the near future.

Last year, the ECB launched a new cost-effective three-year loan programme specifically designed to aid ailing banks around the continent and this scheme proved massively popular, with hundreds of firms signing up for such agreements.

However, during a speech given after it emerged the central institution had decided to keep its base interest rate at one per cent for another month, Mr Draghi said that unless there was a relapse in the debt problem, such initiatives will not be repeated.

"I think the ball is in the governments' and the other actors' - especially banks - court to continue their reforms, to repair their balance sheets so that they can actually ... support the recovery," he noted.

By Asim Shah

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