IMF managing director Christine Lagarde said: The Fund has been asked to enhance its lending toolkit to help the membership cope with crises. We have acted quickly, and the new tools will enable us to respond more rapidly and effectively for the benefit of the whole membership. The reform enhances the Fund’s ability to provide financing for crisis prevention and resolution. This is another step toward creating an effective global financial safety net to deal with increased global interconnectedness. No potential customers for the IMF's new lending facility have yet been named, but as Italy and Spain continue to struggle with their cost of borrowing they would seem like ideal candidates. The IMF has said it will work with countries that have "relatively strong policies and fundamentals", which seems likely to rule out Greece. The fund would allow a country to borrow up to five times the value of the country's IMF quota, or permanent contribution, over six months. Based on its IMF quota, Rome could potentially tap the new IMF fund for some €45.5 billion, while Spain could get €23.3 billion. More on the IMF's new lending facility, which is aimed at helping "bystander" countries protect themselves from contagion. According to a statement released this afternoon the new tool will be used to aid countries with "relatively strong policies and fundamentals" but whose economies are endangered "during periods of heightened economic or market stress"....The "idiocy" of the day : A cunning ruse from EU Commisioner Olli Rehn - to try and win round a sceptical German public, he has renamed "eurobonds" - debt which would be issued jointly by all 17 nations using the euro rather than by Greece, Germany etc individually - as ... "stability bonds"... hahaha (what an imbecile) - Catchy... And unusual for a European Commissioner to suggest the euro has become such a tainted brand that it's better off airbrushed from any financial dealings... The eurobond battle rages on today. Sarkozy, Cameron and the EC have been pushing for them hard, claiming they are the solution to the debt crisis. EC President Barroso even rebranded them "stability bonds" yesterday, not that it seemed to sway a cynical Angela Merkel. She continued her resistance to the plan, joined by Jean-Claude Juncker and Herman Van Rompuy (onother narrow minded fella'), saying: If at all, this discussion belongs at the end - so I don't find it particularly fitting that we are now once again conducting it in the middle of the crisis, as if it were the answer to this crisis. In the long term, it isn't.
Access Investments-Building Awareness - European Union-ROMANIA
Tuesday, November 22, 2011
The eurobond battle rages on
IMF managing director Christine Lagarde said: The Fund has been asked to enhance its lending toolkit to help the membership cope with crises. We have acted quickly, and the new tools will enable us to respond more rapidly and effectively for the benefit of the whole membership. The reform enhances the Fund’s ability to provide financing for crisis prevention and resolution. This is another step toward creating an effective global financial safety net to deal with increased global interconnectedness. No potential customers for the IMF's new lending facility have yet been named, but as Italy and Spain continue to struggle with their cost of borrowing they would seem like ideal candidates. The IMF has said it will work with countries that have "relatively strong policies and fundamentals", which seems likely to rule out Greece. The fund would allow a country to borrow up to five times the value of the country's IMF quota, or permanent contribution, over six months. Based on its IMF quota, Rome could potentially tap the new IMF fund for some €45.5 billion, while Spain could get €23.3 billion. More on the IMF's new lending facility, which is aimed at helping "bystander" countries protect themselves from contagion. According to a statement released this afternoon the new tool will be used to aid countries with "relatively strong policies and fundamentals" but whose economies are endangered "during periods of heightened economic or market stress"....The "idiocy" of the day : A cunning ruse from EU Commisioner Olli Rehn - to try and win round a sceptical German public, he has renamed "eurobonds" - debt which would be issued jointly by all 17 nations using the euro rather than by Greece, Germany etc individually - as ... "stability bonds"... hahaha (what an imbecile) - Catchy... And unusual for a European Commissioner to suggest the euro has become such a tainted brand that it's better off airbrushed from any financial dealings... The eurobond battle rages on today. Sarkozy, Cameron and the EC have been pushing for them hard, claiming they are the solution to the debt crisis. EC President Barroso even rebranded them "stability bonds" yesterday, not that it seemed to sway a cynical Angela Merkel. She continued her resistance to the plan, joined by Jean-Claude Juncker and Herman Van Rompuy (onother narrow minded fella'), saying: If at all, this discussion belongs at the end - so I don't find it particularly fitting that we are now once again conducting it in the middle of the crisis, as if it were the answer to this crisis. In the long term, it isn't.
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6 comments:
Personally, I don't think any country should be waiting for Merkel as Merkel will only do what is good for Germany, nobody else. I think it's time that the markets and politicians woke up to the fact that it is rapidly approaching 'the every man for himself' scene and they should all sit down and have a good think about what's best for THEIR country and people, not the German's. And if that means making a break with the EU and /or EZ then so be it, because once the markets truly wake up to the fact that Merkel is calling the shots and that she is incompetent to be dealing with a crisis of this magnitude, it's going to be UTTER carnage, no other word for it.
And France needn't think that they will be in a privilged position either if they lose their triple A, she will drop them like a hot potato if she thinks they could contaminate Germany at all.
Germany has on balance sheet debt to GDP of 81% already. They have a BIG problem when the PIIGS start to default. German banks are into them for colossal amounts and haven't recapped their banks because they can't afford to.
When TSHTF Germany's debt to GDP will soar above 100%. Merkel says no because Germany would soon be bankrupt.
If France loses the AAA it's curtains for them all. There would be no eurobonds.
What I would like to know is if this is a EU is say democracy. Why are the Eurozone members not voting for Eurobonds, its seems Germany has the say so on this , but surely why not have a vote with the 17 members. Lets find out who wants the Eurobonds or Stability Bonds.
The whole of Europe,Asia, US, waiting on one person Mrs Merkel !!!!!!
Get on with it and make a decision, not just for you but for the whole of Europe and the World.
IMF creates a new tool? This is all getting far too surreal for me now, the world has indeed gone mad, Mark this date ... I just saw CNBC's answer to Rudolf Hess spinning it, desperate is indeed the word, it was worth a quick 50 points on the DOW then presumably traders sat round shaking their heads and contemplated new careers as it fell back again
Hot Live News from The Land of Betting Houses:
MF Global, one of the subprimest Betting Houses of the subprime economy of AIPAC, has been found to have swindled appr. 1,2 billion USD of the client's money.
This is fully normal. In The Land Of Betting Houses, bets are on only if House wins. If House loses, it swindles. It figures.
It is AIPAC - through and through. :)
The negotiations to form a government are “99.9pc there” as one person involved in the talks said. In the past year, the Belgian state has been overhauled, and a consensus forged that €11.3bn of public spending cuts and tax rises need to be found for the 2012 budget. Nobody wants to go back to square one.
And secondly:
There may also be an unexpected hurdle to forming a technocratic team for power. Ironically for a country that hosts the European Union and its thousands of eurocrats, Belgium itself is lacking in such apolitical technocrats.
The ideal man for the job would be ex-Belgian PM and technocrat extraordinaire Herman Van Rompuy - but he's got his hands full running the European Council for now...
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