Business World

Friday 15 December 2017

No external help from European Central Bank for indebted countries warns chief reporters

HEAVILY indebted countries will get no external help from the European Central Bank, president Mario Draghi re-iterated today.

With many economists believing that the bank becoming the lender of last resort for such countries through more purchases of Government bonds as the only way out of the debt crisis, his comments pour water on the possibility yet again.

"I will never tire of saying that the first response should be from government," Mr Draghi said in a speech in Berlin.

"There is no external saviour for a country that doesn't want to save itself," he added.

He said the “firewall” established to calm market is the newly-strengthened bailout fund – the European Financial Stability Facility.

Last week the ECB said it was limiting its purchases of Government bonds putting the onus on countries to sort out their finances.

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