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ECB's Bini Smaghi: EMU Aid Should Have Preferred Status
FRANKFURT -(Dow Jones)- If the rest of the euro zone ever needs to come to the rescue of one of its members again, it should ensure that the loans it offers have preferred status, European Central Bank executive board member Lorenzo Bini Smaghi said Monday.
His call contrasts with the behavior of euro-zone governments earlier in the year, who chosenot to insist on preferred status as creditor when putting together their rescue package for Greece, fearing the effect it would have upon the country's bond market.
In a speech in Abu Dhabi, Bini Smaghi also renewed his criticism of the German government's insistence that an "orderly insolvency procedure" should be an option in any future rescue operations, saying it would be wrong to make any aid conditional on a restructuring of existing debt.
"In advanced economies, the restructuring of the public debt would have to involve a much larger number of financial assets and liabilities, including those of the domestic banking system vis-à-vis residents and non-residents, " Bini Smaghi said. "It can be easily seen that there can hardly be anything 'orderly' in such a process."
Allora è inutile che i risparmiatori imprestino i soldi ai pigs o simili visto che come al solito se le cose si mettono male ne paghiamo noi le spese.
Questi se non stanno attenti alle cazzate che sparano tra un pò generano un panic selling sui paesi deboli dell'europa che sarà memorabile.