Draghi: Cramped credit hurting recovery

Staff Writer
Columbus CEO

SINTRA, Portugal (AP) — European Central Bank President Mario Draghi says the ECB could take targeted steps to get credit flowing to struggling small businesses as a way to boost the tepid economic recovery.

Draghi said Monday at a conference in Sintra, Portugal, that the inability to get credit was hurting viable companies in countries such as Spain and Portugal and holding back growth there.

He said the ECB could make more credit available to banks, so that they could lend it on. Or, the ECB could purchase securities based on loans to small companies, an indirect way of making money available.

He said that "could help reduce the drag on the recovery coming from temporary credit supply constraints."

He didn't say what the bank might do at its next meeting June 5.