Euro zone leaders should step forward and use their bailout funds to stave off additional havoc that the voracious sovereign debt crisis may inflict, President Mario Draghi with the European Central Bank said, The Associated Press reports.
Following Thursday's meeting of the financial institution's policy makers, one technique that Draghi mentioned to address the debt scourge is the acquisition of government bonds. The meeting was the first one since the bank president last week publicly stated he will do what he can to support the debt-riddled region.
"The ECB disappointed and I think we're going to see continued volatility," senior market analyst Michelle Gibley with Schwab Center for Financial Research in Colorado told Reuters. "Not everything Draghi said was negative. There's some hope that something will come of this, but I feel that hope is misplaced."
The ECB opted to preserve short-term interest rates at the record-low level of 0.75 percent.
The two nations that are most vulnerable to high borrowing expenses are Italy and Spain, the 17-nation bloc's third- and fourth-largest economies, respectively.
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