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Mersch-ECB bond buy programme not in same mode-CNBC

FRANKFURT, Nov 24 (Reuters) - The European Central Bank’s government bond purchase programme will not be scrapped but new crisis mechanisms mean the need for it is not as acute, ECB Governing Council member Yves Mersch said on Wednesday.

“When we stepped in it was in a moment of institutional vacuum inside the (European) Union in terms of crisis management and crisis resolution,” Mersch, who also heads the Luxembourg central bank, said in an interview with CNBC.

“In the meantime when have seen the set up of the European Financial Stability Fund... we are in a whole different environment now than when the SMP (bond buy programme) was set up and we have to take into account this change.”

“This does not mean the SMP will have to be scrapped altogether, only that it is not at present in the same functioning mode as it has been six month ago.” (Reporting by Marc Jones)