FRANKFURT, April 4 Economic recovery in
countries on the euro zone periphery has would make it easier
for the European Central Bank to buy their bonds as part of a
general asset=purchase programme, ECB Vice-President Vitor
Constancio said on Friday.
Asked in an interview with CNBC whether concerns about moral
hazard might make it hard for the ECB to buy bonds from the
countries worst afflicted by the financial crisis, Constancio
said this was less of an issue than in the past.
"The fundamentals in Europe have improved, including in
distressed countries ... so the need for big pressure now is
less than it was," he said.
"If we are talking about generalised asset purchases, it
will have to be about asset purchases in all countries, not just
countries who need that. So it's a pure monetary policy thing,
not an instrument to put pressure on particular countries."
ECB President Mario Draghi said policymakers reached
unanimity on Thursday for the first time that asset purchases
funded by newly created money might be needed to tackle
persistently low inflation in the euro zone.
Earlier Constancio said there had been no discussion of
details of how the asset purchases might be conducted.
(Reporting by David Milliken; Editing by Larry King)