Brussels - The European Central Bank (ECB) should not help efforts to boost the financial firepower of the eurozone's rescue fund by lending it money, the outgoing president of the Frankfurt-based body said on Tuesday.
While a top-up of the €440bn ($584bn) European Financial Stability Facility (EFSF) has been ruled out, there are discussions on allowing it to borrow funds using its capital as a guarantee - a practice known as leveraging.
"I am not in favour of bailout funds refinanced by the ECB. There, I think there is some confusion of responsibilities," ECB President Jean-Claude Trichet told the European parliament in a valedictory committee hearing in Brussels.
Trichet, a Frenchman, is stepping down after an eight-year term on October 31, and is due to be succeeded by Italy's central bank governor, Mario Draghi.
The EFSF is already providing funds for the Irish and Portuguese bailouts, and is scheduled to chip in for the second €109bn rescue package for Greece, which was announced in July.
The fund is thought to be too small to be able to rescue Italy or Spain were either of those countries to run into trouble while performing the new functions assigned to it by EU leaders - namely recapitalising banks and buying the bonds of troubled eurozone governments.
While a top-up of the €440bn ($584bn) European Financial Stability Facility (EFSF) has been ruled out, there are discussions on allowing it to borrow funds using its capital as a guarantee - a practice known as leveraging.
"I am not in favour of bailout funds refinanced by the ECB. There, I think there is some confusion of responsibilities," ECB President Jean-Claude Trichet told the European parliament in a valedictory committee hearing in Brussels.
Trichet, a Frenchman, is stepping down after an eight-year term on October 31, and is due to be succeeded by Italy's central bank governor, Mario Draghi.
The EFSF is already providing funds for the Irish and Portuguese bailouts, and is scheduled to chip in for the second €109bn rescue package for Greece, which was announced in July.
The fund is thought to be too small to be able to rescue Italy or Spain were either of those countries to run into trouble while performing the new functions assigned to it by EU leaders - namely recapitalising banks and buying the bonds of troubled eurozone governments.