Jan. 27 - OECD Secretary General Angel Gurria speaks to Insider at Davos 2012
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-- the World Bank announced yesterday it's making 27 billion dollars in funding available to emerging Europe and Central Asia. I LC OECD Secretary General if this is a clear sign now that Europe's banking crisis has indeed affected there's regions. Well I normally when you have difficulties in markets at development banks come in in and filled the space. I think is appropriate. It doesn't mean necessarily that they're gonna use it but it's available in case you do. And this is -- development bank's public capacity to. Correct market failures perceived to be a market failure going on so it's good use of these institutions you. Have meetings here and dump offs you prep meetings at the cost a couple of days what. Are you getting a sense that things are getting better in Europe now we've we've reached a tipping point. Well. We should not need to get to tipping points in order to get things better. We've spent -- enough years now -- -- this issue we still can't do Greece. We should do reason the next few days live from the contagion. Is always there. The firewall has not yet been built we still think being over whether we do to fifty or 500 billion Eritrea and whatever you know and and and we we. We still have the danger of of contagion. In economies that are doing all the homework you know they're doing they're going constitutional with a balanced budget amendment except -- Like Italy and Spain it can go contagion to other than you your still of the view them at that and they're -- I don't want to be done. We've been added for too long. It's we we still will not have a clear roadmap I think we should do it we should address it. And frankly. That uncertainty is the most expensive crazy. Phrase that has to be made every day. A Greek default for you still matters enormously for the Euro zone -- there are some who are saying look they need to do that now. We can remains is going to pay fifty cents on the you Rhode. Close. Maybe a lower interest rates which means that the present value is going to be a reduction of 67%. And that's where it takes now it was not enough we don't know but let's close it. And also let's do firewall that's completely capitalization -- thank you getting let's deal with a question of of it had to -- move to the question of a structural issues and -- with a source solutions sending their fourteen million victims of the prices. That still cannot get jobs and who wrote what you're getting any sense -- all the meetings that what happened that that we are getting close at closing as you said. How how how how frustration of these meetings right well for so long as it is very frustrated team. That many people are very frustrated -- But also we don't use the institutions that we created. To the hilt then of course it's like getting under ringing. And you know for the championship fight -- you've got one hand tied behind your back. That you don't use -- ECB in pool you don't use it to buy bonds. You finally using it now to support the bank which is great is very much needed in the present circumstances but. You also you could even. You know use it to into the element does the stuff you guys babies anymore. What the easy bit web using institutions that we creativity is not a question these -- -- what we should have. Take care of ECB you know DE CB should take care front with members and I'm not doing wrong.
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