Sunday, January 08, 2012

EFSF fund seeking a boost to 30% in state gurantees.

Reuters report taken from the German Sunday press is here. The key quote:

Providing insurance on more than the first 20 percent of euro zone bonds in the case of default would eat up the 250 billion euros the EFSF has left -- after lending to Ireland and Portugal -- and aims to multiply.

In addition of course it will also affect the (sometimes precarious state) of the credit ratings of some of the still AAA rated guarantors, with further obligations to the ESM now looming at the end of this year, or possibly even this summer.

More interesting food for thought from here.



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