ECB ready to support economy, but governments must help, Villeroy says

The European Central Bank is ready to support the economy in the face of the coronavirus outbreak, but governments with budget leeway also need to help, ECB policymaker Francois Villeroy de Galhau said in a Dutch newspaper interview released on Tuesday. Villeroy, who is also head of the French central bank, told De Telegraaf that the ECB's monetary policy was already accommodative and helping to stabilize the euro zone economy.

The ECB's regular refinancing operations and ultra-cheap long-term loans to banks were helping them, in turn, to lend to companies running into trouble because of the virus outbreak, he said. "If necessary, we would stand ready to take appropriate and targeted measures, taking into account the liquidity needs of banks and businesses," Villeroy said, echoing comments from ECB President Christine Lagarde.

Moreover, he said, governments with fiscal space should use it.