The European Central Bank moved Thursday to contain the continent's government debt crisis, extending the availability of emergency loans and keeping its benchmark lending rate at one percent.
European Central Bank President Jean-Claude Trichet Monday sought to reassure investors on the resilience of the Euro-zone as Ireland's formal request for financial assistance from the bloc sparked nervousness on European credit markets.
European Central Bank President Jean-Claude Trichet said on Thursday he did not think the United States was actively trying to weaken the dollar by printing money, despite criticism from emerging economic powerhouses.
Central bank governors and senior regulators have agreed new rules designed to prevent a repeat of the recent financial crisis. At a meeting in the Swiss city of Basle, they agreed a deal requiring banks to hold more capital in reserve.
The European Central Bank left its key interest rate on hold for the fourteenth consecutive month in July as the region's banks face stress tests to ensure the stability of the financial system that is threatened by investor fears about debt.
A default by Greece on its debt obligations is not and has never been an option, a spokeswoman for the International Monetary Fund (IMF) said on Thursday. A Greek “default is not on the table, has not been on the table” insisted IMF director of external relations Caroline Atkinson.
European Central Bank president Jean-Claude Trichet faced down pressure for new moves to shore up the weakest Eurozone countries, but kept options open even as he said Spain and Portugal were “not Greece”.
Banks in the United Kingdom and Europe risk their credit ratings being damaged because of “contagion” from Greece's debt crisis, a ratings agency has warned. Moody's said banking systems faced “very real, common threats” if doubts were raised about their governments' abilities to pay debts. It referred specifically to UK, Irish, Italian, Portuguese and Spanish banking systems.