If there is a reassurance that a government will conform with European expectations, the spread comes down. Our assessment is: even though, of course, the Eurosystem is the big purchaser of sovereign debt, the market still understands that it is not a guarantee. Of course, today because of the inflation too low, we have this policy, but it’s a policy about inflation.
In line with these developments, the bank lending survey for the fourth quarter of 2012 confirms the weakness in credit demand and the continued effect of credit risk considerations on the tightening of credit standards. At the same time, the survey confirms the positive impact of Eurosystem measures on banks’ overall funding and liquidity situation.