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Not twist the rules ‘ECB’
VATICAN CITY : The European Central Bank will not break its rules and should not be pushed to finance the Greek or any o
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VATICAN CITY: The European Central Bank will not break its rules and should not be pushed to finance the Greek or any other government, Executive Board member Lorenzo Bini Smaghi said on Thursday.
"Asking the ECB, as has been the case recently, to extend the maturities of the government bonds it holds or to accept as collateral bonds from a state that is considered to have defaulted is a violation of the principle prohibiting the central bank from monetarily financing the treasury," Bini Smaghi said in the text of a speech given at the Vatican.
"Any pressure whatsoever of this kind flouts the regulations on independence that protect the ECB."
Copyright Reuters, 2011
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