Orphanides: ECB will continue to play supportive role

The European Central Bank will continue to play a significant but supportive role in the battle to calm Europe's debt crisis and is attempting to normalise market turbulence where it exists, Governing Council member Athanasios Orphanides said on Monday.

Cyprus central bank chief Orphanides, speaking at a news conference after the Cypriot bank published new economic forecasts, said that the solidarity of the European Union should not be underestimated but that the crisis was not over.

Markets are watching the ECB closely for any signs of a pick up in its programme of government bond-buying — something that markets and the IMF have called for but the bank has declined to commit to publicly.

"The ECB has an important supportive role to play in political decisions …and its interventions on bond purchases is at the level considered necessary," the Cypriot central banker said.

Bond buying by the ECB helped calm markets at the end of last week, lowering the borrowing costs of countries like Portugal, Spain and Italy which have come under intense market pressure in recent weeks.

Orphanides declined to comment on the situation with Portugal, seen by some as the next in line for a bailout after Greece and Ireland.

"I do not think it is correct to make any comment. Such decisions are the responsibility of the governments involved," he said. "I have full confidence in any decisions the Portuguese government may take on this issue."

Orphanides also said that Greece had shown determination to turn around its finances and warned markets not to underestimate European togetherness.

"The EU was built on a framework of solidarity among people of the EU, we must not underestimate the feeling of solidarity which exists … at the end of the day the EU finds ways to support all of its citizens, irrespective of where they live," he said.