Bloomberg News

ECB’s Liikanen Says Open to Working With IMF, MTV3 Reports

December 09, 2011

(Updates with additional comments starting in second paragraph.)

Dec. 9 (Bloomberg) -- European Central Bank council member Erkki Liikanen said he is open to working with the International Monetary Fund, broadcaster MTV3 reported on its website.

“The IMF has a great advantage in crisis situations from its credibility and experience,” said Liikanen, who also heads the Bank of Finland in Helsinki. “All this temporary funding must be conditional. This is why we are open and positive, as long as things are done by the book.”

European leaders agreed last night to provide 200 billion euros ($267 billion) of new crisis fighting funds to the IMF through the region’s national central banks. Each country holds the key in fixing its own public finances, Liikanen said.

The ECB cut its benchmark interest rate yesterday to 1 percent to “support economic growth in this difficult situation,” Liikanen said. “Inflation risks are balanced at the moment.”

The ECB must ensure the transmission of monetary policy and conducts “temporary operations” to that end, Liikanen told MTV3.

--Editors: Craig Stirling, Fergal O’Brien

To contact the reporter on this story: Kati Pohjanpalo in Helsinki at kpohjanpalo@bloomberg.net

To contact the editor responsible for this story: Tasneem Brogger at tbrogger@bloomberg.net


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