Kranjec: No Reason ECB’s Bond Buying Plan Should Not Succeed

LJUBLJANA (MNI) – ECB’s program of public and private bond
purchases is working and there is no reason it should not prove
effective, Governing Council member Marko Kranjec said Tuesday.

The governor of the Slovenian central bank told reporters here he
had no knowledge of any plan B to restore the functioning of financial
markets, noting that there was overwhelming support on the Council for
the program.

Still, the central bank can react quickly if conditions should
change, he said. “ECB has already shown that it can work overnight.”

The central banker ruled out a break-up of the Eurozone as
unrealistic but declined to speculate on further developments of the
crisis: “I don’t know what kind of shape this recession has,” he said.
“It could be a W or any other letter.”

He expressed concern about the state banking and persistence of
toxic debts on their balance sheets.

[TOPICS: M$X$$$,M$$EC$]