‘Draghi acts again’

Published on 19 July 2013 at 10:06

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European Central Bank President Mario Draghi decided, on July 18, to further facilitate banks’ access to ECB liquidity, reports Cinco Dias.
The ECB will be less strict in the rules it applies on collateral for loans to banks, and will accept asset backed securities with two A ratings, instead of insisting on two AAA ratings as it has done until now. The goal of the measure is to encourage banks to finance more economic activity, and in particular SMEs.
The business daily welcomes the decision, and adds —

Mario Draghi’s main mission is to ensure that liquidity enters the economy. In spite of obstruction from the Bundesbank, the Italian banker has pushed through measures to facilitate the normalisation of money markets in the Eurozone. Yesterday saw him take another step forward.

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