Act fast on euro zone rescue fund, urges ECB chief

European Central Bank (ECB) today pitched for the creation of the emergency rescue fund for bailing out euro zone economies on the brink of collapse, even as unsecured lending between banks dried off and the cost of secured loans rose.
  
ECB chief Mario Draghi asked euro zone governments to put their promises into effect faster as a lack of progress on the European Financial Stability Facility has only helped to escalate the crisis.

The ECB, which is expected to play a major role in tackling the euro zone crisis, now finds itself powerless in the absence of funds.

"Where is the implementation of these long-standing decisions?" Draghi said, adding, "We should not be waiting any longer."

He was addressing a banking conference in Frankfurt.

ECB, which is trying to remain free from political interference, is resisting calls from some European governments to take major action in response to the spreading debt crisis

It has made limited purchases of bonds to steady investors' nerves. But the growing mistrust among banks is forcing them to rely more and more on the ECB for funds. This in turn has a negative effect on people's faith in the ECB.