Lagarde: The European Central will not go bankrupt

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European Central Bank President Christine Lagarde said that the bank “cannot go bankrupt nor run out of money” even if it incurred losses in the multi-trillion euro bonds it bought under stimulus programs.

“As the only source of central bank funds denominated in euros, the euro system will always be able to generate additional liquidity as needed,” Lagarde said today, Thursday, in response to a question from an Italian deputy in the European Parliament.

“So, of course, he will not go bankrupt or run out of money. In addition, any financial losses, if they occur, will not impair our ability to seek and maintain price stability.”

In response to another question, Lagarde said that there is no legal basis for the European Central Bank to cancel its government debt.

Source: “Reuters”



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