An interview of the European central bank president Mario Draghi with Le Journal du Dimanche

15.12.2013

This Sunday Mario Draghi, the president of the European central bank, gave an interview to the French newspaper Le Journal du Dimanche. Mario Draghi remarked that monetary policy which is held since 2011 is still bearing fruit: the refinancing rate was reduced to 0,25% and thus stimulates banks to loan. Also it influences positively on investments climate. Draghi said that the ECB loaned 1 bn. euro to banks for 3-year period in 2011 and more than half of loan is repaid. This measure was taken for supporting banks to loan companies. Also the credit provided by the ECB allowed banks to increase the amount of capital.

But now the situation got complicated by the fact that banks do not want to save the economy: request of loans by companies dropped significantly. Small enterprises beware of decline of sales that is why they hesitate to attract investments and prefer to leave the market. As for big enterprises they conquer the European market, providing themselves with issuing bonds. There was issued about 34 bn. Euro bonds last year. That is the reason why the European central bank intends to convince banks to loan to SME that will have an immediate impact on the economy.

Based on: http://www.ecb.europa.eu/press/key/date/2013/html/sp131215.en.html

Expert’s opinion

Money is obverse of works, products and services provided.

When they forget this fact, people who provide works, products and services mentioned above, stop providing all of these.

Mario Dragha does not know or just neglected this.

The only hope is reduction of tax and social burden on business and encouragement of the most active businessman- all of these will rescue the world from crisis.

Socialism, egalitarianism and encouragement of slackers seem to be the way leading directly to the abyss, which impossible to fill with trillion loans

Yaroslav Lomakin ( Managing partner of Honest & Bright” company)