German fin min unaware of any ECB plan to target bond spreads

BERLIN Mon Aug 20, 2012 5:59am EDT

BERLIN Aug 20 (Reuters) - Germany's finance ministry is not aware of any plans for the European Central Bank to target spreads of bonds of struggling euro zone member states, a spokesman said on Monday in response to a media report.

"I am not aware of any such plans and haven't heard anything," spokesman Martin Kotthaus told a news conference.

"In purely theoretical, abstract terms, such an instrument would certainly be very problematic. But I know of no proposal along these lines," he said.

The latest edition of Der Spiegel says, without naming its sources, that the ECB is discussing interest rate thresholds for individual euro zone countries with a view to intervening if the premium over German bonds is exceeded.

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