Trichet vows funds as debts crisis deepens
CENTRAL banks in Europe are prepared to provide short-term funds to the EU's beleaguered banks if required, ECB chief Jean-Claude Trichet (right) has outlined.
The share price of major banks in France has been slashed due to fears of a default on their Greek debts. The European Central Bank can supply other banks with unlimited amounts of liquidity if required.
"We stand ready to provide liquidity to banks as required, it is again a sentiment that we all expressed," the head of the European Central Bank said.
"In the case of the euro area, we have the capacity as a central bank to provide liquidity on an unlimited basis and at fixed rate."