Jan. 28 - The head of the Bank for International Settlements Jaime Caruana speaks to Insider at the World Economic Forum in Davos
Sort of -- stirring within a half are actually in euros of cheap easy -- loans they snapped up recently some of buying government bonds says I am kind of we're not. Head of the BI -- the central banks. Central Bank. They -- I think that the guy who anecdotal evidence that so -- banks -- doing doing got. -- money. EC in their funding pressures that the banks had. We knew that impact the whole portfolio. I think the objective would be more that they have now we will. Because of the -- because they have less restrictions in terms of funding that they have now able to provide more lending. To be enterprises. To their firms. But pizza you know mother they also by some. Some government most. On the outside I would be cautious about that and I think the main purpose should again be. To finance productive investments. Let's ask you about good firewall but but the trying to build tune. Stop this contagion. Do you think the firewall should be increased and sold by how much I I mean that's sort of him to decide I would say that if I will -- one of the elements that to steal more work needs to be done. I think because I was saying at the beginning. There's been a lot of work I -- have enough country levens had eleven of the union in what do statistic nation we want to to have a -- -- they ECB. I think this -- to remove the contagion element if I won't needs to be effective that needs to be large. And I think conduct this do more work needs to be done. Something is going on I know him doubles but I -- says the talks on the street bond swap. Teasing the European Central Bank or any official institution should be prepared text and I think Erica. I think we should news is Steve we -- threatened that we were working we've. And I think we were talking about volatility involvement. I think there has been a lot of work in the private sector and the -- sector. In reach an agreement and I think he should be the basis. All of the of the new face of the Greek situation and so what I hope is that they would continue and conclude these conversations of these negotiations which. We all understand it is difficult and but that I think I think -- -- very important. Final question European Central Bank officials have been at pains to point a situation. These decreased. Is unique. Thoughts do you think it will set up sets up president. I think is unique and he should be unique and it'd be unique or not he would be it would also depend. -- on how we manage different in this situation that we -- aside he was mentioning from the beginning that has read so many elements paucity. That I hope that these would be the case I I think. We cover more expensive for me to be it is appreciated. All of these post excuse that -- that's how hot and perhaps because neither. Communication -- the sequencing have been. Very good. But to do when you who are coming into all these elements. And I think -- -- -- duties that would free some for a -- to be hope to have the they hope that these a year would be the beginning of difficulty in Europe.