Volkswagen urges ECB to buy short-term debt to stabilize markets: FT

Volkswagen's chief financial officer called on the European Central Bank to accelerate purchases of short-term debt, the Financial Times reported on Friday.

The German carmaker told the Financial Times that the ECB should send"clear signals" and purchase the short-term debt, which often matures in as little as six or nine months,"as soon as possible". The ECB last week said it will prop up markets, including through the purchase of commercial paper as part of a 750 billion euro plan in extra asset purchases to contain the financial fallout from the coronavirus pandemic.

"There's a lot of pressure on the incoming money flow," said VW Chief Financial Officer Frank Witter."We have different diversified funding sources available, but not all of them are as liquid as they were," he added. Witter said that Volkswagen, which has yet to tap credit lines with banks in excess of 20 billion euros, considered that facility"a back-up" for when capital markets are shut.

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