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OECD chief urges 'credible signal' from ECB, bond buying

Published on Sep 2, 2012 7:08 PM

BLED, Slovenia (AFP) - OECD chief Angel Gurria on Sunday urged the European Central Bank (ECB) to give a credible signal to markets and resume bond-buying to help debt-wracked Italy and Spain as soon as possible.

"I think that the ECB is the bazooka, the firepower, the muscle, the one that has the capacity to impress upon the markets and say: yes we will," Mr Gurria told journalists on the sidelines of a conference in Slovenia's lakeside resort of Bled.

Asked whether the ECB should buy Italian and Spanish bonds, Gurria, the head of the Organisation for Economic Cooperation and Development, said: "Yes, they should, if you ask when, the answer is the sooner the better."

"It has to be a credible signal... to say: we have members of the family that are doing the right thing, we will not let you push them around," he also said, adding that Italy and Spain remained under market pressure despite taking measures to bring their finances into order. "If you have the ECB which can work in the markets in order to bring down the maturities, then why not."

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