ECB President Mario Draghi said it is too early to talk about withdrawing liquidity from markets as European economies still needs help amid the surging joblessness and contractions recorded by euro area economies.

He stressed on the positive effect of the LTROs on bank's lending stating that any exit strategy talk is premature,referring that the pressure seen recently is a result of investors who are awaiting to see strong reforms from highly indebted nations.

Draghi expects euro area economies to recover gradually with the likelihood of seeing a contraction in the first quarter.