Noyer said "Nonsense," Let the whole Euro-Region of Ireland is experiencing problems

central bank chief in France rejected the view that the euro zone is experiencing a systemic crisis, minimize the risk of contagion from the turmoil in Ireland and hailing the euro as a "great success."

It is "absurd" to generalize to all the current problems in Europe, Bank of France, Christian Noyer, governor, told a press conference today in Tokyo. While Ireland is coping with the legacy of a property bubble burst in the market and Greece, with the consequences of mismanagement of its debt, Spain is in "good hands" and has already addressed the problems with smaller banks said.

Noyer statements in front of a sell-expanding government bonds from the Euro-Greece's rescue earlier this year, with yields of periphery nations called euro zone growing at its highest since 1991, the introduction euro. The currency headed for its biggest monthly decline against the dollar since May, on concern the debt crisis from spreading.

"Non-standard measures will be maintained as long as necessary" in the European Central Bank, Noyer, a member of the ECB governing council, also said. May the bank agreed to extend emergency loans to banks and buy bonds directly from the government for the first time.

The ECB buy bonds from the Portuguese government on 26 November, according to four people with knowledge of operations, amid speculation that the nation will be under pressure to tap the European rescue fund. Janet Henry, chief European economist at HSBC Holdings Plc in London, said that the authorities can provide more help to banks in Spain and Portugal and, ultimately, could expand its program of bonds with an option to purchase of Spanish stocks.

Noyer in Spain

Spain's problems are not of the same magnitude as that of Ireland, Noyer said today. "In Portugal, the situation is improving as expected. The Portuguese government has confirmed its commitment to ensure a reduction of public deficit to 4.6 percent in 2011," he said, referring to the proportion of gross domestic product.

In general, Europe's public finances are in better shape than in many countries including the U.S., the central banker said in previous comments at a conference in Tokyo.

Europe's economic recovery is "on track" and the region faces a crisis of confidence in its currency, he said. The euro is a "great success" and has helped the ECB's price stability, he said. Questions about the future of the euro are "completely" off the table, also said today.

European finance chiefs in crisis talks ended yesterday in Brussels with 85 million euros (112 million) aid package for Ireland. Meanwhile, Greece was given an extra year of four and a half to pay for emergency loans totaling 110 million euros to match the period of seven years trying to Ireland.

Honor debts

Europe has addressed the challenges "very seriously", and Ireland has begun to take harsh measures, Noyer said.

"The package is very well suited and restore competitiveness in Ireland," he said. "It will be an important goal for all members of the European Union to do everything necessary to be able to fully meet its debt in the future."

Finance ministers yesterday approved a Franco-German agreement on the post-2013 rescues which means that investors do not automatically take the loss of sharing the cost with taxpayers and German Chancellor Angela Merkel, initially proposed.

In his speech, the French central bank chief called for an international effort to address the volatility of financial flows, saying that a patchwork of individual efforts to establish venture capital controls to prevent pressures without moving.

The volatility is increasing in foreign currencies and commodities, and market changes can exacerbate the economic crisis, he said.

Capital controls

Noyer proposal highlights the danger of increased capital flows to emerging markets that policy makers are concerned about asset bubbles cause. UN has adopted different measures to manage risk, with South Korea that includes a tax on foreign investments in bonds and Indonesia for a lock-up period for foreign purchases of bills.

While a country may have an impact on the inflow of foreign capital through the introduction of controls, the risk is that the money then flows elsewhere, putting pressure on other asset markets, Noyer said. He said the global capital markets are closely linked, and that volatility can be induced by policy makers.

"In advanced economies, monetary easing, along with inhibitions in credit growth, creates a potential for the future of financial imbalances," Noyer said, without specifying whether the Federal Reserve plan to buy $ 600 billion in Treasury bonds is a source of volatility.

The concern of the bubble

Officials of the nations from Brazil to China have said the Fed's attempt to boost U.S. growth risks triggering capital flows to emerging markets that create asset bubbles. Noyer said it is not good for nations to challenge the policies of the other currency.

While the Group of 20 has launched a global campaign to build financial safety nets, no doubt about the coherence of the policy strategies of some of the world's largest economies, Noyer said. He said countries must be disconnected record accumulation of foreign exchange reserves from the management of exchange rates.