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7/31, 9:26 AM (Source: TeleTrader)
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Lagarde: Safety net needed at least until June 2021

The Eurozone's "safety net" will have to be maintained at least until June next year, European Central Bank (ECB) President Christine Lagarde said in an interview published on Friday. Very attractive conditions have to be kept in this period to help the economy, she stressed.

Lagarde stressed that "a real risk" is small and medium-sized enterprises will go bankrupt before the end of the year while larger companies will have a tough 2021.

"The ECB decided in June to increase the volume of its asset purchases from €750 billion to €1,350 billion, to continue these purchases at least until June 2021 (the original end date was the end of 2020), and to reinvest the maturing securities at least until the end of 2022. We should envisage support continuing beyond 2020. We really have to maintain a safety net and very attractive conditions at least until June 2021," the central banker said.

Breaking the News / VP