European Rescue Fund May Face Biggest Test Yet |
| New York Times - Apr 18, 2012 |
The euro zone’s rescue fund has already helped mount full-scale bailouts of three of Europe’s smaller economies.
But concern over the health of Spain’s financial institutions — laid low by a festering home-mortgage crisis — has fueled speculation that, for the first time, the bailout fund might be needed to help recapitalize the banks of a big country.
“I don’t foresee the need for Spain to come, but there is a lot of money available,” Klaus P. Regling, chief executive of the euro zone’s current bailout fund, said here Tuesday at his staff headquarters. He added that there were “lots of positive elements in Spain that are ignored at the moment but that, no doubt, over time will become clearer to everybody.”
Mr. Regling heads the European Financial Stability Facility, the emergency bailout fund that still has about €248 billion, or $325 billion, of its original €440 billion of lending power. In July, that fund is to be superceded by a permanent strongbox, the European Stability Mechanism, which will have a firepower of about €500 billion — beyond the €192 billion already committed to Ireland, Portugal and Greece.
Read Full Article from New York Times
- Posted: 2012-04-18 15:21:37
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