Better deal mulled for foreign euro fund investors
Monday, 9 January 2012
BERLIN, Jan 8 (AFP): The head of the eurozone's bailout fund is considering offering foreign investors a better deal in a bid to improve sluggish demand, a German newspaper reported Sunday.
Klaus Regling, who runs the European Financial Stability Facility (EFSF), is mulling plans to offer investors outside the eurozone an insurance of 30 per cent against a possible default, the Bild am Sonntag weekly said.
Without citing sources, the paper quoted Regling as telling a meeting of German parliamentarians last week that the current 20 per cent guarantees offered were "too low" to cover investors' risk.
A temporary fund, the 440 billion euro ($560 billion) EFSF uses guarantees issued by eurozone governments to raise funds on money markets which are then lent to debt-wracked eurozone countries such as Ireland, Portugal and Greece.
Klaus Regling, who runs the European Financial Stability Facility (EFSF), is mulling plans to offer investors outside the eurozone an insurance of 30 per cent against a possible default, the Bild am Sonntag weekly said.
Without citing sources, the paper quoted Regling as telling a meeting of German parliamentarians last week that the current 20 per cent guarantees offered were "too low" to cover investors' risk.
A temporary fund, the 440 billion euro ($560 billion) EFSF uses guarantees issued by eurozone governments to raise funds on money markets which are then lent to debt-wracked eurozone countries such as Ireland, Portugal and Greece.