ECB rejects new direct lending

Tim Wallace
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THE EUROPEAN Central Bank is doing all it can to help boost economic growth, a top official said yesterday, hitting out at critics who have called for it to directly increase lending to firms and households.

Executive board member Joerg Asmussen defended the ECB’s record, saying it has reduced liquidity risk dramatically through refinancing operations, expanded the range of securities it takes as collateral, provided foreign currency liquidity and bought covered bonds.