(Bloomberg) -- The head of the Europe’s rescue fund said that his institution is keeping an eye on commercial real estate, but doesn’t see a crisis for now.

Asked on Bloomberg Television about the severity of the situation in the region, Pierre Gramegna, who heads the European Stability Mechanism, was sanguine.

“As of now, this issue which was on the radar since interest rates went up in all countries, has not materialized spectacularly,” he said on Tuesday. “We monitor it at the ESM because we are there to ensure financial stability.”

The commercial-property sector is under pressure amid elevated borrowing costs and plunging valuations, squeezing banks around the world. Asked about Germany, Gramegna warned against emphasizing any particular country.

“I wouldn’t focus on German lenders,” he said. “The issue is everywhere and we need to have a global view on this. That’s what we do as the safety mechanism of the euro area, we look at all the countries — we are a united Europe, so we have to have all the inter-linkages also.”

Asked about Italy’s continued failure to ratify a reform of the ESM — something that has been done by the other 19 euro-area countries — Gramegna said that “there is still a lot of explanations to do in Italy.”

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