Eurozone debt’s risk keeps spreading – ECB officialApril 2, 2012 - 14:06 AMT PanARMENIAN.Net - A former senior official at the European Central Bank (ECB) has said that the risk of eurozone debt woes spreading, the so-called contagion threat, has always been "overstated". But Juergen Stark, who resigned last year as the ECB's chief economist, said that it was too early to say if Greece will be able to meet its austerity targets. He said this would be known in six months time. Greece has now received two bailouts. On Friday, March 30, eurozone finance ministers agreed to increase the size of the area's rescue funds. They agreed to boost the joint lending power of the "firewall" from 500bn euros ($668bn; £416bn) to 800bn euros ($1.1tn; £667bn). Mr Stark said: "In my view, from the very start the contagion question was overstated. "Now with the reform programs underway and being implemented in Ireland, being implemented in Portugal, also the new political process in Italy, and the progress made so far in Spain, from this point of view, contagion is limited." Mr Stark announced his resignation in September 2011 because he disagreed with the bank's purchasing of sovereign bonds from eurozone nations, BBC reported. Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | Kazakhstan welcomes Yerevan, Baku’s agreement to meet in Almaty Kassym-Jomart Tokayev has welcomed the agreement of Baku and Yerevan to hold negotiations in Almaty. Armenia offers to temporarily host, preserve Gaza manuscripts The Armenian Foreign Minister has said Yerevan is ready to help preserve manuscripts from the conflict zone in Gaza. Aliyev says no need for mediators in Armenia-Azerbaijan process Azerbaijani President Ilham Aliyev believes that Baku and Yerevan do not mediators in the process of normalizing relations. Aram I supports Karekin II’s “patriotic position” Catholicos of the Great House of Cilicia Aram I has expressed support for the Mother See of Holy Etchmiadzin. |