Central Banks Need To Consider The Option Of Buying Corporate Debt

Central Banks Need To Consider The Option Of Buying Corporate Debt

http://www.ft.com/cms/s/0/df28b9bc-fc19-11dd-aed8-000077b07658.html?nclick_check=1

The central banks of Europe and the governments must consider buying corporate debt on an emergency basis in order to prevent businesses from going bankrupt, says the leader of the European Union’s employers’ federation. The proposal by Ernest-Antoine Seillière, President of BusinessEurope emphasized the concern of several companies about securing access to credit.

Additionally, the EU authorities and the governments in the 27-nation bloc have taken up fiscal stimulus packages which increase the public expenditure like unemployment benefit. However, none of the European presidents, prime ministers or the central bank governors have taken heed to Mr Seillière’s suggestion. This has disappointed Mr Seillière to a great extent. Banks too are not willing to lend to private companies in Europe.