President of the European Central Bank Christine Lagarde is sure that Europe will face severe economic shock comparable with the 2008 financial crisis if the EU countries do not assume urgent measures against the spread of coronavirus as Bloomberg reported.
She also added that if the proper measures are assumed, the shock will be temporary. The leadership of the European Central Bank considers all available tools. Special attention is paid to the measures which allow to provide ‘ultra-cheap’ financing and provide a continuous flow of credits and liquidity.
According to Lagarde, the steps assumed by the bank might work only in the case if the EU countries support them with the measures, which encourage banks to credit the companies in the segments, which suffered from negative consequences of coronavirus spread.
It means that the European Central Bank will lower the interest rate and, possibly, increase the volume of the current program of quantitative easing. The ban may also correct the programs of the provision of cheap credits to the banks.
As we reported, Foreign Ministry of Ukraine, in the conditions of Covid-19 spread, created the situation room for coordination of the work of the ministry, involved authorities and international organizations to protect the citizens of Ukraine abroad.