Mariano Rajoy urges the ECB to do more to stimulate lending in Spain. "I would like the ECB to...

|By:, SA News Editor

Mariano Rajoy urges the ECB to do more to stimulate lending in Spain. "I would like the ECB to act like other central banks," Rajoy says, citing the BOE's Funding for Lending scheme. The central bank should give "cheap loans to financial entities so that these financial entities can lend at cheaper rates to small and medium-sized companies." This brings to mind a fairly recent episode during which the central bank was accused of applying a haircut 11 times too small to collateral pledged by Spanish banks. From Die Welt at the time: "The bonds pledged as security meet the central bank's requirements only in part."