Rolf Strauch of the European Stability Mechanism – a key vehicle to prop up indebted European nations – says the ESM will stick to its liquidity mandate and is not a development bank mechanism. The ESM has only used 10% of its capacity so far to help nations such as Greece and Cyprus, with countries required to meet fiscal hurdles before accessing funds. Mr Strauch said long term no-interest loans from the ESM enabled struggling nations to reform their finances and access capital markets again.
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