ECB's Coene says crisis heading to 2008/9 level: reportBRUSSELS (Reuters) - The problems of
liquidity and confidence in Europe are not as severe as during post-Lehman crash, but are heading in that direction, ECB Governing Council member Luc Coene said in an interview published on Friday.
"The chief problem in Europe is that of
liquidity," Coene, who is governor of Belgium's central bank, told French-language daily newspaper La Libre Belgique.
"The banks have again lost confidence and so
lend less to each other. The situation is not as bad as in 2008-2009, but you see that it is going little by little in this direction."
Coene said this concern stemmed from continued
uncertainty regarding the bailout plans, particularly for Greece.
However, Coene said that one should not forget
political engagement for the plans, which was "very firm."
The European Financial Stability Facility, he said, was an effective instrument to deal with the crisis, but was still in formation. Uncertainty remained over the issue of collateral, as demanded by Finland, and the participation of banks.
Source: Reuters US Online Report Business News
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It's all about "how much you made when you were right" & "how little you lost when you were wrong"