ECB Buying Government Bonds to Unblock Markets, ECB Kranjec Says

The European Central Bank is buying and will continue to buy bonds from the euro region because the financial markets are blocked, Marko Kranjec, a member of the governing council of the ECB, said in an interview with the Slovenian weekly magazine Demokracija.

“The ECB is just enabling a transmission of the monetary policy with which it ensures the functioning of the European financial markets,” Kranjec, who’s also the Governor of Slovenia’s central bank, said in the interview to be published tomorrow.

Kranjec also said the Frankfurt-based rate-setting bank is “indicating that it doesn’t take rating companies at an absolute value.”

“The ECB with its program of purchase of government bonds is buying these securities on the secondary market of those countries that have low credit ratings and cannot get an appropriate price or cannot sell them at all.”

To contact the reporter on this story: Boris Cerni in Ljubljana at bcerni@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net

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