The permanent European rescue fund should be able to put capital into banks without going through national governments, an International Monetary Fund official said.
The European Stability Mechanism, or ESM, needs that access to “de-link the sovereign and banking risk at the national level,” Jose Vinals, director of the IMF’s monetary and capital markets department, said today in an interview on Bloomberg TV’s “InBusiness With Margaret Brennan.”
Vinals warned against getting “caught into a wave of pessimism by recent market data” even if the “situation is uncertain” in countries including Spain and Italy.
“Perseverance with the right policies at the national level and at the European level is something that over time should be rewarded,” he said.
Vinals was speaking ahead of meetings of Group of 20 finance ministers and central bank governors, the IMF and World Bank starting tomorrow in Washington.