Go Finance Reporting - The euro zone finance ministers are under pressure ahead of the meeting today to discuss the possibility of a rescue fund raising in the region. The pressure came after a number of people wanted a reserve fund additional post-bailout Greece and Ireland last year.
Belgian Finance Minister Didier Reynders called for the rescue fund was increased to twice the original, from 750 billion euros to 1.5 trillion euros ($ 2 trillion). He hoped the issue could be raised at the monthly meeting of eurozone ministers in Brussels.
"I think doubling the amount of funds that makes sense," Reynders said as quoted by AFP.
German Finance Minister Wolfgang Schaeuble, whose country has the largest commitment in Agency Facilities Financial Stability (EFSF) said that the increase in borrowing capacity EFSF may be required. However, the debate on increasing the size of it "not realistic".
Because the increase in reserve funding crisis means that the increase in loan guarantees from the eurozone countries. Earlier, European rescue mechanism that combines funds from EFSF amounted to 440 billion euros, plus 250 billion euros from the IMF, and an additional 60 billion euros from the European Union.
Germany and the euro zone countries notes that only 10 percent of bailout funds which have been used so far to help the Irish. However, effective credit capacity EFSF estimated at only 250 billion euros of the total fund.
European Commission President Jose Manuel Barroso, who led Europe's executive body, urged the leaders took the decision with the next summit meeting on 4 February.
Agenda of the meeting one of them is to meet market demands that Portugal and Spain worry about the fate of so-called most at risk receive international aid. EU rescue mechanism is applied when the Irish struggled from crisis and was forced to accept the bailout in November. However, analysts warned that the number was too small to help the Spanish even if it needs to bailout.
"If the German government officially still reluctant to change the" rules of the game ", an increasing number and scope of EFSF be possible," said ING Group's records.
According to ING, if the relief valve was opened to Portugal EFSF, these funds are not considered to be enough to help Spain which will require the support of about 300 billion euros. (GoFinance)
No comments:
Post a Comment