European Central Bank

EUROPA PRESS the ECB President replied to Rajoy, who conditioned the the ransom demand to obtain certain guarantees about the Spanish differential. The President of the Spanish Government authorization the rescue to the ECB intervention will help relax the risk premium up to 200 basis points. Draghi has said that it must be the country which decides if the ransom. The institution maintains the interest rates by 0.75%. The President of the European Central Bank (ECB), Mario Draghi, has sent Thursday a message to the Spanish Government to point out that the entity cannot offer any guarantee in advance on the effectiveness of its program of buying sovereign debt and that it must be the country that decide if you want to request or not the rescue. It cannot guarantee anything in advance. There is no quid pro quo automatic, Draghi told the remind you recent statements of the President of the Government Spanish, Mariano Rajoy, who conditioned a potential request for assistance to obtain guarantees that the ECB intervention will help to relax the risk premium on Spanish until the environment of 200 basic points. It is the country which should take steps to activate the mechanism, explained the Italian banker, to remind that, according to the intervention mechanism designed in debt (UNWTO) markets, it is necessary that the country requested the rescue and sign a memorandum of understanding, but he stressed that, although necessary, is not one sufficient condition, since it is the Governing Council of the ECB which will make the final decision.

In this regard, the ECB President said that the UNWTO are there and reiterated the readiness of the entity to activate the mechanism, which, in his view, has served to relax the conditions on markets and has helped facilitate that countries such as Spain and Italy have practically completed its financing needs, although he noted that it is not possible to activate the WTO without conditionality on Tuesday, the President the Spanish Government, he pointed out that one of the outstanding issues to clarify before you decide to ransom or not the that active intervention by the ECB is to know how much would this measure help reduce the costs of financing of Spain in the debt markets, pointing that it should help to relax the risk premium up environment of 200 basic points. There are several outstanding issues. How much will lower the risk premium, if stays in the 400 and peak and does not go down to 200 points. It is not the same, said Rajoy. If we stay at the same price that there are pointless, he stressed. See more: the ECB responds to Rajoy and does not warrant that its debt purchase program is effective