IMF chief economist defends ECB plans to buy ABS

(ANSA) - Washington, October 7 - The chief economist of the International Monetary Fund (IMF) on Tuesday defended a plan by the European Central Bank (ECB) to purchase asset-backed securities (ABS), saying it "can make a difference". Olivier Blanchard said that Europe has a problem supplying credit for small- and medium-sized businesses, and this will help. The program, announced by ECB President Mario Draghi, has created controversy with some German officials saying they fear that it will put taxpayers' money at risk.