Large-scale debt cancellation during coronavirus pandemic 'unthinkable,' ECB's Lagarde says

Lagarde said the world needs to focus on 'keeping the economy going,' not the 'cancellation question'

European Central Bank President Christine Lagarde dismissed on Thursday the possibility of a generalised cancellation of debts contracted during the coronavirus crisis.

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“That seems totally unthinkable to me. It’s not the right time to ask the cancellation question, right now we are concentrated on keeping the economy going,” Lagarde said in an interview on France Inter radio.

“Later we will look at how to pay down the debt and how we manage public finances in the most efficient way,” she added.

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Former ECB chief Mario Draghi has called for corporate debt cancellations.

(Reporting by Leigh Thomas; Editing by Catherine Evans)

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