Wednesday, January 12, 2011

More euro bailout schemes

EU Crisis Plan May Feature Portugal Aid, Buybacks, Debt Rules

European governments are considering aid for Portugal, debt buybacks, lower interest rates on rescue loans and guarantees against excessive debt as part of a package to quell the financial crisis, according to two people with direct knowledge of the talks.
The plan, which may include a loan to Portugal of about 60 billion euros ($78 billion) and purchases of outstanding Greek debt, would mark an attempt to contain a crisis that has frustrated unprecedented efforts by policy makers to calm markets and raised questions about the health of the 17-nation euro economy.
Euro-area finance ministers will discuss elements of the package next week, though the debate is so sensitive in Germany that decisions may wait until a scheduled summit of political leaders on Feb. 4, said the people, who declined to be named because the deliberations are private.
Full text
Comment: Euro authorities are determined to save the euro. That has been my thesis from the beginning of the euro crisis almost a year ago. In the meantime euro authorities have invested so much prestige and funds that it doesn't need willingness. Saving the euro has become a necessity.

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